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.
Here's What to Expect From Wyndham (WH) in Q2 Earnings
Read MoreHide Full Article
Wyndham Hotels & Resorts, Inc. (WH - Free Report) is scheduled to release second-quarter 2023 results on Jul 26, after the market close. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line is pegged at 92 cents per share, indicating decline of 14% from $1.07 per share reported in the year-ago quarter.
For net revenues, the consensus mark is pegged at $367.6 million, suggesting a decline of 4.8% from the prior-year quarter’s reported figure.
Let's check out the factors that are likely to have influenced the company’s results.
Key Factors at Play
Wyndham’s second-quarter results are likely to have been hurt by lower occupancy rates due to higher pricing. Given the economic uncertainties, consumers are now more selective and price conscious, which is reflected in the comparatively lower consumer discretionary spending on a year-over-year basis.
Meanwhile, the bottom line of Wyndham is likely to have been affected by the persisting inflation, increased interest expenses and high costs. The higher cost environment is expected to have put pressure on the company’s margins.
Furthermore, the company’s increasing global development pipeline is likely to have partially offset the impacts of the aforementioned headwinds. Increase in royalties and franchise fees, as well as marketing, reservation and loyalty revenues, are likely to have aided the company’s performance.
For the mentioned quarter, the Zacks Consensus Estimates for royalties and franchise fees, as well as marketing, reservation and loyalty (under the fee-related and other revenues) revenues, are pegged at $147 million and $153 million, up 10.5% and 5.5% year over year, respectively.
For the second quarter, the consensus estimate for global RevPAR is pegged at $46.79, portraying 5.7% growth from the prior year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for WH this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: The company has an Earnings ESP of -2.13%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: WH currently carries a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +19.43% and a Zacks Rank of 2.
Shares of MGM Resorts have increased 11.5% in the past three months. MGM’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 81%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +8.09% and a Zacks Rank of 2.
Shares of Marriott have increased 11.5% in the past three months. MAR’s earnings beat estimates in all of the trailing four quarters, the average negative surprise being 8%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank of 3.
Shares of Hilton have increased 1.8% in the past three months. HLT’s earnings beat estimates in all the trailing four quarters, the average surprise being 17.2%.
Image: Bigstock
Here's What to Expect From Wyndham (WH) in Q2 Earnings
Wyndham Hotels & Resorts, Inc. (WH - Free Report) is scheduled to release second-quarter 2023 results on Jul 26, after the market close. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line is pegged at 92 cents per share, indicating decline of 14% from $1.07 per share reported in the year-ago quarter.
For net revenues, the consensus mark is pegged at $367.6 million, suggesting a decline of 4.8% from the prior-year quarter’s reported figure.
Wyndham Hotels & Resorts Price and EPS Surprise
Wyndham Hotels & Resorts price-eps-surprise | Wyndham Hotels & Resorts Quote
Let's check out the factors that are likely to have influenced the company’s results.
Key Factors at Play
Wyndham’s second-quarter results are likely to have been hurt by lower occupancy rates due to higher pricing. Given the economic uncertainties, consumers are now more selective and price conscious, which is reflected in the comparatively lower consumer discretionary spending on a year-over-year basis.
Meanwhile, the bottom line of Wyndham is likely to have been affected by the persisting inflation, increased interest expenses and high costs. The higher cost environment is expected to have put pressure on the company’s margins.
Furthermore, the company’s increasing global development pipeline is likely to have partially offset the impacts of the aforementioned headwinds. Increase in royalties and franchise fees, as well as marketing, reservation and loyalty revenues, are likely to have aided the company’s performance.
For the mentioned quarter, the Zacks Consensus Estimates for royalties and franchise fees, as well as marketing, reservation and loyalty (under the fee-related and other revenues) revenues, are pegged at $147 million and $153 million, up 10.5% and 5.5% year over year, respectively.
For the second quarter, the consensus estimate for global RevPAR is pegged at $46.79, portraying 5.7% growth from the prior year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for WH this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: The company has an Earnings ESP of -2.13%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: WH currently carries a Zacks Rank #4 (Sell).
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +19.43% and a Zacks Rank of 2.
Shares of MGM Resorts have increased 11.5% in the past three months. MGM’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 81%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +8.09% and a Zacks Rank of 2.
Shares of Marriott have increased 11.5% in the past three months. MAR’s earnings beat estimates in all of the trailing four quarters, the average negative surprise being 8%.
Hilton Worldwide Holdings Inc. (HLT - Free Report) has an Earnings ESP of +0.36% and a Zacks Rank of 3.
Shares of Hilton have increased 1.8% in the past three months. HLT’s earnings beat estimates in all the trailing four quarters, the average surprise being 17.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.