Overview
U.S. hotel franchisor's Q1 adjusted EPS and adjusted net income beat analyst expectations
Q1 revenue rose 3% yr/yr, driven by 4% system-wide room growth and higher ancillary revenue
Company returned $85 mln to shareholders via share repurchases and dividends in Q1
Outlook
Wyndham Hotels sees 2026 net revenues of $1.47 bln to $1.50 bln, up from prior $1.46 bln to $1.49 bln
Company expects 2026 adjusted EBITDA of $730 mln to $745 mln
Wyndham forecasts 2026 adjusted diluted EPS of $4.62 to $4.80
Result Drivers
ROOM GROWTH - 4% global system-wide room growth, led by international expansion, contributed to revenue increase
ANCILLARY REVENUES - 21% year-over-year increase in ancillary revenues supported overall revenue growth
LOWER ROYALTIES AND FEES - Decline in royalties and franchise fees and absence of one-time cost reductions weighed on comparable adjusted EBITDA
Company press release: ID:nPn2DPMha
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Beat
$0.96
$0.86 (13 Analysts)
Q1 EPS
$0.80
Q1 Adjusted Net Income
Beat
$73 mln
$64.22 mln (9 Analysts)
Q1 Net Income
$61 mln
Q1 Adjusted EBITDA
Beat
$156 mln
$149.83 mln (11 Analysts)
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "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 $99.00, about 15.8% above its April 28 closing price of $85.46
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)