Hotel franchising company Wyndham (NYSE: WH) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Wyndham beat analysts’ revenue expectations last quarter, reporting revenues of $327 million, up 3.5% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but full-year EBITDA guidance slightly missing analysts’ expectations.
Is Wyndham a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Wyndham’s revenue to grow 1.5% year on year, slowing from the 8.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Wyndham has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Wyndham’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%, and Carnival reported revenues up 5.3%, in line with consensus estimates. Delta traded down 3.2% following the results while Carnival’s stock price was unchanged.
Read our full analysis of Delta’s results here and Carnival’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 2.2% on average over the last month. Wyndham is down 6.6% during the same time and is heading into earnings with an average analyst price target of $100.35 (compared to the current share price of $76.57).
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