Wyndham Hotels & Resorts (NYSE:WH) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• Wyndham Hotels & Resorts beat quarterly earnings expectations: EPS came in at $1.43 versus the $1.32 consensus, while revenue reached $410 million, slightly above estimates.
• The company approved a $400 million share repurchase program, allowing it to buy back up to 7.6% of outstanding shares. It also pays a quarterly dividend of $0.43, equivalent to a 2.2% annual yield.
• Analysts maintain a “Moderate Buy” consensus, with nine Buy ratings and five Holds and an average price target of $95.08, above the reported trading price of $78.06.

Wyndham Hotels & Resorts (NYSE:WH - Get Free Report) released its earnings results on Wednesday. The company reported $1.43 earnings per share for the quarter, topping analysts' consensus estimates of $1.32 by $0.11, FiscalAI reports. Wyndham Hotels & Resorts had a return on equity of 74.22% and a net margin of 14.67%. The business had revenue of $410.00 million for the quarter, compared to the consensus estimate of $408.87 million.

Wyndham Hotels & Resorts Price Performance

Wyndham Hotels & Resorts stock traded up $0.71 during trading hours on Wednesday, hitting $78.06. 1,767,670 shares of the stock were exchanged, compared to its average volume of 1,320,599. The company has a debt-to-equity ratio of 5.53, a quick ratio of 0.99 and a current ratio of 0.99. The stock has a market capitalization of $5.79 billion, a P/E ratio of 28.70, a P/E/G ratio of 1.97 and a beta of 0.67. Wyndham Hotels & Resorts has a 12 month low of $66.87 and a 12 month high of $90.35. The business's 50-day moving average is $72.25 and its two-hundred day moving average is $77.90.

Wyndham Hotels & Resorts Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a $0.43 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $1.72 dividend on an annualized basis and a yield of 2.2%. Wyndham Hotels & Resorts's payout ratio is 63.24%.

Analyst Ratings Changes

WH has been the subject of a number of research reports. The Goldman Sachs Group reiterated a "neutral" rating and issued a $80.00 price objective on shares of Wyndham Hotels & Resorts in a research report on Thursday, July 23rd. JPMorgan Chase & Co. decreased their price objective on Wyndham Hotels & Resorts from $100.00 to $97.00 and set an "overweight" rating on the stock in a report on Tuesday, July 21st. Susquehanna lowered their price objective on Wyndham Hotels & Resorts from $90.00 to $80.00 and set a "neutral" rating on the stock in a research report on Tuesday, August 11th. Wells Fargo & Company upped their target price on Wyndham Hotels & Resorts from $96.00 to $98.00 and gave the company an "equal weight" rating in a research note on Thursday, July 16th. Finally, Truist Financial cut their target price on Wyndham Hotels & Resorts from $107.00 to $104.00 and set a "buy" rating for the company in a research note on Thursday, September 10th. Nine research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Wyndham Hotels & Resorts presently has an average rating of "Moderate Buy" and a consensus price target of $95.08.

Wyndham Hotels & Resorts declared that its board has approved a share buyback plan on Tuesday, September 29th that permits the company to buy back $400.00 million in shares. This repurchase authorization permits the company to reacquire up to 7.6% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Wyndham Hotels & Resorts

In other news, CEO Geoffrey Ballotti sold 19,295 shares of Wyndham Hotels & Resorts stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $73.69, for a total value of $1,421,848.55. Following the completion of the transaction, the chief executive officer owned 550,457 shares in the company, valued at approximately $40,563,176.33. The trade was a 3.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.33% of the company's stock.

Wyndham Hotels & Resorts Company Profile

Wyndham Hotels & Resorts, Inc is a global hotel franchising company that operates an asset-light lodging business. Rather than owning and managing most of its hotels, the company licenses its brands and provides franchisees with support in areas such as marketing, reservations, technology, training and operational standards.

Its portfolio includes a range of economy, midscale and upscale hotel brands, including Super 8, Days Inn, Ramada, La Quinta, Microtel, Baymont, Wingate, AmericInn, Wyndham, Wyndham Garden, Registry Collection Hotels and ECHO Suites Extended Stay by Wyndham.

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