Wyndham Worldwide 3Q earnings slip on currency
PARSIPPANY, N.J. (AP) — Wyndham Worldwide Corp. said Wednesday its third-quarter earnings fell 9 percent as the impact of a stronger dollar and higher costs overshadowed improving revenue.
The company earned $159 million, or $1.11 per share, compared with $175 million, or $1.08 per share, a year ago. Net income fell while per-share results rose because the company had 18 million fewer shares outstanding in the most recent quarter. Taking out the effect of currency exchange, Wyndham said net income would have grown by 6 percent. When the dollar is strong, international sales translate into fewer dollars back at home.
Wyndham also said the 2011 quarter benefited from $22 million in favorable adjustments.
Revenue rose 4 percent to $1.27 billion. Sales in the company's hotel and timeshare ownership groups drove results. Revenue per available room, or revpar, for hotels open at least a year increased 2 percent, or 3 percent in constant currency. Domestic revpar rose 5 percent.
Expenses increased by 5 percent, Wyndham said.
Analysts expected a profit of $1.10 per share on revenue of $1.27 billion, according to FactSet.
For the full year, Wyndham raised the low end of its guidance range. It now expects to earn $3.15 to $3.20 per share, compared with a previous forecast of $3.10 to $3.20 per share.
It now sees revenue between $4.5 billion and $4.6 billion, up from a previous range of $4.43 billion to $4.6 billion.
Analysts expect earnings per share of $3.18 on revenue of $4.52 billion.
In morning trading, shares of the company slipped 65 cents to $52.65.