Wyndham beats Q2 adjusted EPS estimates, raises full-year outlook

Overview

• Wyndham Q2 adjusted EPS up 18%, beating analyst expectations, per LSEG data

• Adjusted net income rises 13% to $103 mln, exceeding estimates, per LSEG data

• Co raises full-year 2025 EPS outlook amid strong pipeline and system growth

Outlook

• Wyndham raises full-year 2025 adjusted EPS outlook to $4.60-$4.78

• Company increases 2025 rooms growth outlook to 4.0%-4.6%

• Wyndham maintains 2025 fee-related revenues at $1.45 bln-$1.49 bln

• Company expects 2025 adjusted EBITDA of $730 mln-$745 mln

Result Drivers

• ROOM GROWTH - System-wide rooms grew 4% year-over-year, driven by 5% growth in EMEA and Latin America regions

• DEVELOPMENT PIPELINE - Development pipeline expanded 5% year-over-year to a record 255,000 rooms

• ANCILLARY REVENUES - Ancillary revenues increased 19% compared to Q2 2024, contributing to higher fee-related revenues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Wyndham Hotels & Resorts Inc is $103.88, about 15.4% above its July 22 closing price of $87.93

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn1Tx7SLa