Wyndham Worldwide Corporation ( WYN - Analyst Report ) , the hotel giant, surprised on estimates by 17.14% in the first quarter and reaffirmed 2009 guidance despite a difficult start to the year. The company has surprised on estimates four quarters in a row by an average of 12.47%. WYN's forward P/E is 8.2.

Company Description

Wyndham Worldwide is one of the world's largest hospitality providers. The company operates more than 7,000 hotels in 67 countries on 6 continents. It also has a network of over 150 vacation ownership resorts that services 830,000 owners in North America, the Caribbean and the South Pacific.

Wyndham Surprised for the 4th Consecutive Quarter

On Apr 29, Wyndham Worldwide reported first quarter results that beat analysts' estimates by 17.14%, or 6 cents per share. Adjusted net income rose 19% to $74 million, or 41 cents per share, compared to $62 million, or 35 cents, in the year ago period. Analysts expected 35 cents.

Revenue fell by 11%, however, to $901 million, mainly due to unfavorable foreign currency effects as the U.S. dollar strengthened in its vacation exchange and rental business. Vacation rental revenue fell 19% from the year ago quarter.

2009 Outlook Reaffirmed

Wyndham is optimistic about 2009 despite the difficult economic conditions encountered in the first quarter.

"Adjusted EPS was up 17% from last year, and the Company generated net cash from operating activities of approximately $210 million," said Stephen P. Holmes, Chairman and CEO.

"These results reflect the durability of our businesses and the resilience of our fee-for-service business models, as well as strong execution and continued cost discipline," he said.

The company reaffirmed 2009 guidance of revenue between $3.5 and $3.9 billion.

Second-quarter guidance is expected in the range of 36 to 41 cents. Full-year adjusted EPS was reaffirmed and was forecast between $1.61 and $1.85.

Consensus Estimates Rise

Given the company's confirmation of previous guidance, estimates for the second quarter moved higher by 2 cents to 38 cents, or in the middle of the company's guidance range.

For the full year, estimates jumped 8.2% to $1.72 from $1.59 per share with 6 out of 6 covering analysts raising in the last week. This puts the consensus squarely in the middle of the company's guidance range.

Value Fundamentals

Wyndham Worldwide is a Zacks #1 Rank (strong buy) stock. It has an attractive price-to-earnings ratio of 8.2. Its price-to-book is 0.97. The company has an average 5-year return on equity (ROE) of 10.80%. Additionally, the company pays a dividend with a current yield of 1.80%.