Tweet
CHICAGO (MarketWatch) -- Shares of Wyndham Worldwide were up Wednesday after the hotel and timeshare operator posted a sharp drop in second-quarter profit but managed to squeeze past Wall Street expectations on the back of cost cuts -- and stuck to its full-year, top-line view.
Wyndham /quotes/comstock/13*!wyn/quotes/nls/wyn (WYN 13.09, +0.42, +3.32%) earned $71 million, or 39 cents a share, compared to $98 million, or 55 cents a share in the year-ago period. On an adjusted basis, it would have earned 41 cents a share.
Revenue came in at $920 million, down 19% from $1.13 billion on the back of the stronger U.S. dollar, reduced time-share sales and what the company called "continued weakness in the global lodging industry."
The average estimate of analysts polled by FactSet Research had been for the company to earn 37 cents a share on revenue of $920 million.
Wyndham noted that its "concentration in the economy and mid-scale segments led it to outperform the overall industry" as average domestic revenue per available room (RevPAR) was off just 13.6% compared to the 19.5% industrywide drop estimated by Smith Travel Research.
Looking ahead, the company stuck to its 2009 revenue forecast of $3.5 billion to $3.9 billion but declined to give a profit target, saying that "certain items cannot be reasonably estimated or predicted at this time."
Shares were up about 5% at $13.30 in midday action.
"This was a solid quarter for Wyndham and it showed the company is making all efforts to manage its expenses while its top line continues to decline," wrote Steve Kent of Goldman Sachs in a note to investors. "These results also once again highlight Wyndham's two relatively stable businesses, lodging and vacation exchange and rental."
Wyndham /quotes/comstock/13*!wyn/quotes/nls/wyn (WYN 13.09, +0.42, +3.32%) earned $71 million, or 39 cents a share, compared to $98 million, or 55 cents a share in the year-ago period. On an adjusted basis, it would have earned 41 cents a share.
Revenue came in at $920 million, down 19% from $1.13 billion on the back of the stronger U.S. dollar, reduced time-share sales and what the company called "continued weakness in the global lodging industry."
The average estimate of analysts polled by FactSet Research had been for the company to earn 37 cents a share on revenue of $920 million.
Wyndham noted that its "concentration in the economy and mid-scale segments led it to outperform the overall industry" as average domestic revenue per available room (RevPAR) was off just 13.6% compared to the 19.5% industrywide drop estimated by Smith Travel Research.
Looking ahead, the company stuck to its 2009 revenue forecast of $3.5 billion to $3.9 billion but declined to give a profit target, saying that "certain items cannot be reasonably estimated or predicted at this time."
Shares were up about 5% at $13.30 in midday action.
"This was a solid quarter for Wyndham and it showed the company is making all efforts to manage its expenses while its top line continues to decline," wrote Steve Kent of Goldman Sachs in a note to investors. "These results also once again highlight Wyndham's two relatively stable businesses, lodging and vacation exchange and rental."