The Statistics Don’t Lie: Wyndham Worldwide Corporation (NYSE:WYN) Earnings Preview

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Wyndham Worldwide Corporation (WYN) retreated -2.57% to reach at the floor price of $67.35 as the company is set to share its next quarterly earnings on July 20, 2016. WYN stock trades between $67.26 and $69.11 before the earnings release. Let’s take a closer look at the June 2016 earnings estimates, particularly the things investors should pay close attention to. Earnings (EPS) for the recently concluded quarter is projected to come in at $1.4/share with $1.45B in revenue.

Earnings Track Record: If history is anything to go by, Wyndham Worldwide Corporation (WYN) managed to beat quarterly EPS forecasts in 10 of the trailing three fiscal years, and has a positive trend with an average surprise of 83%. Last time the company reported, Wyndham Worldwide Corporation generated $1.12 in earnings per share, surpassing the mean forecast of $1.11. Revenues reached $1.3B in the March 2016 quarter, which was higher than the consensus $1.31B projection. On the other hand, in the December 2015 quarter it recorded a net $1.31B revenue with EPS of $0.98. Wall Street had projected $1.29B and $0.97, respectively. For comparison, there was a revenue of $1.56B and earnings of $1.78 in the September 2015 quarter.

Future Earnings: After upcoming financial results, all eyes will be on the outlook or guidance for the next reporting quarter (September 2016). Analysts, on average, predict Wyndham Worldwide Corporation to earn $2.01 in earnings per share (EPS) on revenue of $1.45B. The earnings-per-share consensus range is $1.97-$2.07 on sales between $1.42B and $1.47B.

Stock Trend vs. Analyst View: The stock is trading up 11.16 percent versus 1-year low of $60.59 and stands -23.47 lower from its peak of $87.78. The consensus price target of $80 means that the market expects Company shares to increase by 18.78% in the short run. The sell-side target prices range from $63 to $95. In the last month the stock has moved in price -13.43%, with a one year change of -22.64%. The last trading session volume compares with the 1.43M average and market worth floats around $7.54B.

Recent Analyst Rating Changes: The buoyancy in the prospect of Wyndham Worldwide Corporation (WYN) is getting weaker by the somewhat negative sentiment (2.1 on a 5-point scale) that brokerage firms have issued concerning it. Wall Street analysts on the average recommend the company shares as Overweight. Credit Suisse has been covering shares of WYN, so it’s most recent view is worth a look. In a research note released on February 05, 2016, analysts at Credit Suisse issued its first rating on the stock at Neutral.  Another noteworthy analyst activity was recorded on January 11, 2016. Deutsche Bank analysts lifted the stock to Hold from Sell.

 

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