Wyndham Worldwide (WYN) Tops Q1 EPS by 5c, Miss on Revenues; Offers FY18 EPS Mid-Point Outlook Below Consensus, FY18 Revenue View Below Consensus

Wyndham Worldwide (NYSE: WYN) reported Q1 EPS of $1.33, $0.05 better than the analyst estimate of $1.28. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.23 billion.

• First quarter revenues from continuing operations were $1.2 billion, an increase of 3% compared with the prior-year period. Results reflect the required adoption of the new revenue recognition standard, which had an immaterial year-over-year impact on the Company\'s results on a comparable basis.
• Net income from continuing operations in the first quarter of 2018 was $81 million compared with $127 million for the first quarter of 2017. Diluted earnings per share (EPS) from continuing operations were $0.80, versus $1.20 in the prior-year period. Net income from continuing operations was impacted by $53 million ($0.53 per diluted share) of after-tax separation- and transaction-related costs in first quarter 2018.
• Adjusted net income from continuing operations was $134 million or $1.33 per diluted share, compared with $106 million or $1.01 per diluted share in the first quarter of 2017. Adjusted diluted EPS increased 32%, and 10% excluding the benefit of a reduced effective income tax rate.

Outlook

The Company\'s outlook for 2018 adjusted EBITDA from continuing operations is unchanged from the outlook it provided in February. The Company projects the following results for full-year 2018:

• Revenues of $5.195 billion to $5.335 billion, an increase of 4% to 7%. The change from the Company\'s prior projection is entirely due to the impact of the new revenue recognition standard, which did not affect projected year-over-year revenue growth calculated on a comparable basis
• An effective tax rate applicable to adjusted pretax earnings of approximately 25%.
• Adjusted net income from continuing operations of $702 million to $717 million, an increase of 25% to 28%, approximately 19 points of which is due to a lower effective tax rate.
• Adjusted EBITDA of $1.330 billion to $1.355 billion, which represents year-over-year growth of 7% to 9% and is comprised of:
  • Hotel Group adjusted EBITDA of $445 million to $455 million
  • Destination Network adjusted EBITDA of $265 million to $275 million
  • Vacation Ownership adjusted EBITDA of $735 million to $750 million
• Adjusted diluted EPS from continuing operations of $6.96 to $7.11, which is an increase of 28% to 31% and is based on a diluted share count of 100.8 million.

GUIDANCE:

Wyndham Worldwide sees Q2 2018 EPS of $6.96-$7.11, versus the consensus of $7.00. Wyndham Worldwide sees Q2 2018 revenue of $5.195-5.335 billion, versus the consensus of $5.36 billion.

For earnings history and earnings-related data on Wyndham Worldwide (WYN) click here.

You May Also Be Interested In

• Blackhawk Network (HAWK) Reports Q2 Loss of $0.07; Offers Guidance
• Lument Finance Trust (LFT) Misses Q2 EPS by 17c
• Eikon Therapeutics, Inc. (EIKN) Misses Q2 EPS by 163c