Dallas, Texas 04/30/2014 (FINANCIALSTRENDS) – Wyndham Worldwide Corporation (NYSE:WYN) reported its first quarter 2014 operation results on 24th April after markets opened. The robust results led to the investors trooping into the stock and led to an increase in the share price. The restaurant chain operator also increased its guidance for 2014 and thus helped sustain the rally in its share price.
Wyndham Worldwide Corporation (NYSE:WYN) which operates such world renowned resort chains like “Wyndham, Ramada, Howard Johnson and Days Inn” in the U.S and globally reported net income of $90 million for the quarter. This translates into an EPS of 69 cents and was close to three times more than the $27 million earnings it had reported in 1Q13. EPS in 1Q13 had come in at 19 cents per share.
The comparable three fold increase in earnings has been linked to the big spurt in bookings for the ensuing summer vacations and in addition to a onetime expense the firm had reported during the last year reporting cycle, in which it had retired debt early. Revenue was up 5 percent in the reporting quarter to peak at $1.19 billion as against the $1.13 billion it had reported in 1Q13.
On the back of the sustained build up in its business momentum, Wyndham Worldwide Corporation (NYSE:WYN) management decided to raise their EPS guidance for the full year to come in between $4.23 and $4.33 as against the previously forecasted $4.18 and $4.28 per share.
Expressing happiness at the great start to the new year, Wyndham Worldwide Corporation (NYSE:WYN) Chairman and CEO Stephen P. Holmes has been quoted to have said that, “In our Hotel Group, domestic RevPAR growth accelerated. In Vacation Ownership, a combination of increased sales and a lower loan loss provision drove strong revenue growth. In our Exchange and Rentals business, peak season summer vacation rental bookings are up from last year. We continued to generate strong free cash flow and to return a significant portion of that cash to shareholders.”