Hotels operator Wyndham Worldwide Corp. (WYN) Wednesday reported a decline in profit for the third quarter, hurt by lower revenues across all business segments. On an adjusted basis, earnings per share came in above of the company's expectation as well as analysts' estimate. Wyndham also provided an earnings outlook for the fourth quarter and updated the full-year revenue view.
For the third quarter, net income declined to $104 million or $0.57 per share from $142 million or $0.80 per share in the previous year.
On an adjusted basis, net income was $106 million or $0.58 per share compared to $148 million or $0.83 per share in the earlier year. For the quarter, the company was expecting earnings in the range of $0.53 to $0.57 per share.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share. Analysts' estimates typically exclude special items.
The Parsippany, New Jersey-based company's net revenues for the quarter declined 17% to $1.02 billion from $1.23 billion a year ago. Analysts expected a revenue of $1.00 billion for the third quarter. The company attributed the decline to the previously announced initiative to reduce the deployment of capital in its vacation ownership business, continued weakness in the global lodging industry, and unfavorable foreign exchange rate movements which negatively impacted its exchange and rentals business.
Service fees and membership revenues declined to $445 million from $468 million last year. Vacation ownership interest sales were $285 million, down from $446 million in the previous year. Franchise fees decreased to $126 million from $153 million and consumer financing revenues declined to $108 million from $111 million a year ago. Other revenues rose to $52 million from $48 million in the year ago quarter.
By segments, Wyndham Hotel Group revenues declined 14% to $183 million due to a decline in worldwide RevPAR. Revenue from Wyndham Exchange and Rentals were $327 million, an 8% decrease from the previous year due to unfavorable foreign currency movements. Revenue from Wyndham Vacation Ownership declined 23% to $508 million from the previous year, primarily reflecting the planned reduction in tour flow.
Total expenses for the quarter were $810 million, compared to $984 million last year.
Interest expense rose to $34 million from $21 million, while interest income declined to $1 million from $2 million a year ago.
For the nine-month period, net income declined to $220 million or $1.21 per share from $282 million or $1.58 per share in the same period of the previous year. Net revenues for the period declined to $2.84 billion from $3.37 billion last year.
Looking forward, the company expects earnings in the range of $0.35 to $0.38 per share for the fourth quarter of 2009. Analysts currently expect earnings of $0.32 per share on revenues of $817.86 million for the next quarter.
For the full-year 2009, revenues are expected to range between $3.5 billion and $3.9 billion, while analysts expect $3.64 billion. For full year 2010, the company expects revenue will be consistent with the current guidance ranges for 2009.
WYN is currently trading at $17.29, up 0.60 or 3.95%, on the NYSE.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.