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We expect hospitality company Wyndham Worldwide Corp. (WYN - Analyst Report) to beat earnings expectations when it reports first-quarter 2013 results before the opening bell on Apr 24.

Why a Likely Positive Surprise?

Our proven model shows that Wyndham has the right combination of two key ingredients to beat earnings.

Positive Zacks ESP: The Earnings ESP (Read: Zacks Earnings ESP: A Better Method) for Wyndham is +3.03%. This indicates the difference between the Most Accurate estimate, which stands at 68 cents per share, and the Zacks Consensus Estimate of 66 cents per share. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks Rank #3 (Hold): The combination of Wyndham’s Zacks Rank #3 (Hold) when combined with a positive Earnings ESP of +3.03% makes us confident of a positive earnings surprise in the soon-to-be reported quarter.

Note that stocks with Zacks Ranks of #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell rated stocks (#4 and 5) should never be considered going into an earnings announcement.

Drivers of Better-than-Expected Earnings

We believe Wyndham will likely beat earnings in first-quarter 2013 gaining from strong operational performance of the Vacation Ownership business, increased global travel demand, revival of the North American market and further international expansion.

Wyndham outperformed the Zacks Consensus Estimates for both earnings and revenues in all four quarters of 2012 with an average earnings surprise of 4.79%.

Other Stocks to Consider

Wyndham is not the only stock expected to post impressive results this earnings season. We also observe that there are other companies in the leisure sector, which are likely to beat earnings.

Hyatt Hotels Corporation (H - Snapshot Report) Earnings ESP of +37.50% and a Zacks Rank #3 (Hold).

Marriott International, Inc. (MAR - Analyst Report) Earnings ESP of +4.88% and a Zacks Rank #3 (Hold).

Wynn Resorts Ltd. (WYNN - Analyst Report) Earnings ESP of +3.87% and a Zacks Rank #3 (Hold).

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