PARSIPPANY, NEW JERSEY Wyndham Worldwide Corp reports higher-than-expected earnings and sales for the second quarter and is boosting its 2010 earnings outlook.
Wyndham reports net income of US$95 million, or 51 cents per share, compared with US$71 million, or 39 cents per share, a year before. Adjusted profits of 51 cents per share beat consensus analyst estimates of 40 cents. Overall revenue rose 5% to US$963 million. Revenue from Wyndham’s timeshare business, which makes up about half of the company’s annual revenue, rose 8.1%.
Wyndham is raising its 2010 earnings outlook, citing better expected results and an improved tax structure. Wyndham predicts RevPAR will rise as much as 3%, compared with a previous projection of flat to down 3%. It projects full-year earnings per share between US$1.78 and US$1.88, topping analyst expectations of US$1.68.
Wyndham’s board of directors has authorized a US$300 million increase to the current share repurchase program. For the quarter, the company repurchased approximately 2.2 million shares of its common stock at an average price of US$24.33.
Wyndham’s portfolio currently sits at 7,160 properties and 606,800 rooms, of which 24% are outside the United States. Its development pipeline includes approximately 980 hotels and 107,600 rooms, of which 54% are new construction and 49% are international.