We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wyndham (WYN) to Report Q4 Earnings: A Beat in the Cards?
Read MoreHide Full Article
We expect Wyndham Worldwide Corporation to beat expectations when it reports fourth-quarter and full-year 2016 numbers on Feb 15, before the opening bell.
Last quarter, Wyndham posted a positive earnings surprise of 1.07%. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 0.98%.
Let’s see how things are shaping up for this announcement.
Our proven model shows that Wyndham is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Earnings ESP for Wyndham is +2.31% because the Most Accurate estimate is pegged at $1.33, while the Zacks Consensus Estimate stands at $1.30. A favorable Zacks ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Wyndham currently has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Wyndham’s favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Wyndham’s strong developmental pipeline, consistent expansion plans, significant international exposure and robust marketing efforts is expected to drive earnings in the to-be-reported quarter. Increasing business and leisure travel on the back of an improving economy and positive employment numbers along with higher transaction volumes should also boost the quarter’s results.
Additionally, the company’s robust vacation ownership or timeshare business – which is one of the fastest evolving and profitable sectors in the hospitality industry – is likely to further propel fourth-quarter performance. Moreover, Wyndham’s attractive Loyalty and Rewards Program along with other strategic initiatives undertaken are likely to increase occupancy.
However, lingering uncertainty in various economies like Europe, Brazil and China is likely to limit revenue growth. Also, soft demand in oil producing regions is likely to hurt revenue per available room (RevPAR) in the fourth quarter. Additionally, negative currency translation is likely to hamper the company’s results as it has been doing over the past few quarters, given Wyndham’s considerable international operations.
Other Stocks to Consider
Wyndham is not the only company looking up this earnings season. Here are some other hotel companies to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wyndham (WYN) to Report Q4 Earnings: A Beat in the Cards?
We expect Wyndham Worldwide Corporation to beat expectations when it reports fourth-quarter and full-year 2016 numbers on Feb 15, before the opening bell.
Last quarter, Wyndham posted a positive earnings surprise of 1.07%. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 0.98%.
Let’s see how things are shaping up for this announcement.
Wyndham Worldwide Corp Price and EPS Surprise
Wyndham Worldwide Corp Price and EPS Surprise | Wyndham Worldwide Corp Quote
Why a Likely Positive Surprise?
Our proven model shows that Wyndham is likely to beat on earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Earnings ESP for Wyndham is +2.31% because the Most Accurate estimate is pegged at $1.33, while the Zacks Consensus Estimate stands at $1.30. A favorable Zacks ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Wyndham currently has a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Wyndham’s favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-than-Expected Earnings?
Wyndham’s strong developmental pipeline, consistent expansion plans, significant international exposure and robust marketing efforts is expected to drive earnings in the to-be-reported quarter. Increasing business and leisure travel on the back of an improving economy and positive employment numbers along with higher transaction volumes should also boost the quarter’s results.
Additionally, the company’s robust vacation ownership or timeshare business – which is one of the fastest evolving and profitable sectors in the hospitality industry – is likely to further propel fourth-quarter performance. Moreover, Wyndham’s attractive Loyalty and Rewards Program along with other strategic initiatives undertaken are likely to increase occupancy.
However, lingering uncertainty in various economies like Europe, Brazil and China is likely to limit revenue growth. Also, soft demand in oil producing regions is likely to hurt revenue per available room (RevPAR) in the fourth quarter. Additionally, negative currency translation is likely to hamper the company’s results as it has been doing over the past few quarters, given Wyndham’s considerable international operations.
Other Stocks to Consider
Wyndham is not the only company looking up this earnings season. Here are some other hotel companies to consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Extended Stay America, Inc. has an Earnings ESP of +21.43% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #3.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #3.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>