Wyndham Worldwide 4Q results top Street's view
PARSIPPANY, N.J. (AP) — Wyndham Worldwide's net income surged 45 percent in the fourth quarter, helped by better performances from its lodging and vacation ownership businesses.
Wyndham beat Wall Street expectations and boosted earnings and revenue forecasts for all of 2013 Wednesday.
The company earned $81 million, or 57 cents per share, for the three months ended Dec. 31. That's up from $56 million, or 37 cents per share, a year earlier.
Stripping out restructuring costs, impairment charges and other items, earnings were 63 cents per share. That topped analyst estimates by 3 cents, according to a FactSet poll, and revenue, which rose 9 percent to $1.09 billion, edged out Wall Street estimates as well.
Lodging revenue climbed 19 percent to $223 million, while revenue for the vacation ownership business increased 12 percent to $590 million.
For the year, Wyndham earned $400 million, or $2.75 per share. That compares with $417 million, or $2.15 per share, in the previous year.
Adjusted earnings were $3.23 per share.
There were fewer shares outstanding for the year ended Dec. 31, 2012.
Annual revenue increased 7 percent to $4.53 billion from $4.25 billion.
Wyndham now foresees 2013 earnings between $3.57 and $3.70 per share. Its prior outlook was for earnings in a range of $3.50 to $3.60 per share. Revenue is anticipated between $4.93 billion and $5.1 billion, up from $4.9 billion to $5.05 billion.
Analysts predict earnings of $3.68 per share on revenue of $4.83 billion.
Wyndham Worldwide Corp., based in Parsippany, N.J., also said that its board is increasing its quarterly dividend by 26 percent to 29 cents per share from 23 cents per share, starting with the dividend expected to be declared in the first quarter.