July 27 (Bloomberg) -- Wyndham Worldwide Corp., the lodging company that reported earnings increases for seven consecutive quarters, climbed the most in five months after beating estimates and boosting its full-year forecast.
The stock rose 93 cents, or 2.7 percent, to $35.10 as of 11:04 a.m. in New York Stock Exchange composite trading. The franchiser of Days Inn hotels and Super 8 motels gained as much as 5.4 percent, the biggest intraday gain since Feb. 15.
The U.S. hotel industry has been recovering from recession lows of 2009 and 2010. Occupancies in the top 25 U.S. markets climbed to 65 percent this year through May from 62 percent a year earlier, according to Smith Travel Research Inc. of Hendersonville, Tennessee.
“The stock will react favorable to today’s ‘beat & raise,’ especially in light of recent mediocre results and uninspiring guidance from lodging companies like Marriott International Inc. and Host Hotels & Resorts Inc.,” Patrick Scholes, an analyst at FBR Capital Markets Corp., wrote in a note to investors today.
Wyndham’s adjusted earnings, excluding items such as a $13 million tax refund, were 64 cents a share, the Parsippany, New Jersey-based company said in a statement today. Analysts expected earnings of 56 cents a share on that basis, the average of 11 estimates in a Bloomberg survey. The company raised its full-year adjusted forecast to $2.32 to $2.40 a share from a range of $2.15 to $2.25.
Marriott on July 13 was the first of the major U.S. hotel chains to report second-quarter earnings. The hotelier’s shares fell the most two years after reporting room revenue that trailed industry growth and saying timeshare sales declined. Starwood Hotels & Resorts Worldwide Inc. will announce results tomorrow, while Hyatt Hotels Corp. is scheduled to report on Aug. 2.
--Editors: Christine Maurus, Daniel Taub
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