Stock Story -
Hotel franchising company Wyndham (NYSE:WH) will be reporting results tomorrow afternoon. Here's what investors should know.
Wyndham missed analysts' revenue expectations by 1.1% last quarter, reporting revenues of $305 million, down 2.6% 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? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Wyndham's revenue to grow 2.4% year on year to $370.5 million, a reversal from the 6.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.04 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wyndham has missed Wall Street's revenue estimates four times over the last two years.
Looking at Wyndham's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival (NYSE:CCL) delivered year-on-year revenue growth of 17.7%, beating analysts' expectations by 1.9%, and Levi's reported revenues up 7.8%, in line with consensus estimates. Carnival traded up 12% following the results while Levi's was down 15.7%.
Read the full analysis of Carnival's and Levi's results on StockStory.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7.9% on average over the last month. Wyndham's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $89 (compared to the current share price of $74.7).