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Wyndham Worldwide moves to 4th-quarter profit
(From the Associated Press) – Feb. 10 2010
PARSIPPANY, N.J. — Wyndham Worldwide Corp. said Wednesday that it moved to a fourth-quarter profit, helped by a slight increase in revenue for its timeshare business as the year-earlier period was weighed down by hefty charges.
The lodging company earned $73 million, or 40 cents per share, for the quarter. That compares with a loss of $1.36 billion, or $7.63 per share.
The prior-year period’s results included $8.10 per share in charges.
Analysts polled by Thomson Reuters, whose estimates usually exclude include one-time items, predicted a profit of 37 cents per share, on average.
The performance also beat Wyndham’s guidance for earnings between 35 cents and 38 cents per share.
Revenue for the three months ended Dec. 31 improved to $913 million from $911 million, topping Wall Street’s estimate of $855.7 million.
Vacation ownership revenue edged up 3 percent to $508 million, while exchange and rental revenue rose 3 percent to $258 million.
Systemwide revenue per available room, a key gauge of a hotel operator’s performance, declined 11.9 percent. The figure fell 13.3 percent in constant currency. Wyndham brands include Ramada, Days Inn and Super 8.
For the year, Wyndham’s profit was $293 million or $1.61 per share. In 2008 Wyndham posted had a loss of approximately $1.1 billion, or $6.05 per share.
Adjusted earnings were $327 million, or $1.80 per share, which removes 19 cents per share in restructuring costs and other items.
Annual revenue fell about 12 percent to $3.75 billion.
Looking ahead, Wyndham anticipates 2010 revenue between $3.5 billion and $3.9 billion. Analysts expect revenue of $3.61 billion for the year.
Separately, the company raised its dividend and said it will resume share repurchases.