Hotel franchising company Wyndham (NYSE: WH) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Wyndham missed analysts’ revenue expectations last quarter, reporting revenues of $334 million, down 2.1% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and full-year EBITDA guidance missing analysts’ expectations.
Is Wyndham a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Wyndham’s revenue to grow 1.6% year on year, slowing from the 3.6% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Wyndham has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Wyndham’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. American Airlines delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 0.6%, and United Airlines reported revenues up 10.6%, topping estimates by 1.1%. American Airlines traded up 5.2% following the results while United Airlines was down 5.6%.
Read our full analysis of American Airlines’s results here and United Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 12.8% on average over the last month. Wyndham is up 6.5% during the same time and is heading into earnings with an average analyst price target of $99.82 (compared to the current share price of $85.35).
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