WYNDHAM WORLDWIDE $58.84 - New York symbol WYN

WYNDHAM WORLDWIDE $58.84 (New York symbol WYN; TSINetwork Rating: Extra Risk) (973- 753-6000; www.wyndhamworldwide.com; Shares outstanding: 133.0 million; Market cap: $8.0 billion; Dividend yield: 2.0%) reported higher revenue and earnings in the latest quarter.

In the three months ended June 30, 2013, the hotel and resort operator’s revenue rose 10.0%, to $1.25 billion from $1.14 billion a year earlier. The company gets most of its revenue from vacation rather than business travel, and vacation bookings rose in the latest quarter. That helped push up Wyndham’s average occupancy rate slightly, to 55.2%.

Before one-time items, earnings rose 12.6%, to $0.98 a share from $0.87. The company continues to buy back its stock. In the latest quarter, it repurchased 2.9 million shares for $175 million. In 2012, it bought back 12.9 million shares for $623 million.

The stock is trading near all-time highs. But although Wyndham’s outlook is positive, the shares now trade at a high 20.4 times the company’s latest 12 months of earnings.

Wyndham is a hold.

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