Wyndham (WH) Q3 Earnings Report Preview: What To Look For

Hotel franchising company Wyndham (NYSE:WH) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Wyndham met analysts’ revenue expectations last quarter, reporting revenues of $367 million, up 1.4% year on year. It was an ok quarter for the company, with a decent beat of analysts’ earnings estimates.

Is Wyndham a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Wyndham’s revenue to grow 1.7% year on year to $408.9 million, a reversal from the 1.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 9 analysts). Wyndham has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Wyndham’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 15.2%, meeting analysts’ expectations, and Delta Air Lines reported revenues up 1.2%, topping estimates by 2.5%. Carnival traded down 2.8% following the results while Delta Air Lines’s stock price was unchanged.

Read our full analysis of Carnival’s results here and Delta Air Lines’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Wyndham is up 4.2% during the same time and is heading into earnings with an average analyst price target of $89.53 (compared to the current share price of $82.69).

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