Topic: Growth Stocks

The Stock Pickers Digest Hotline – Friday, May 1, 2009

Article Excerpt

WYNDHAM WORLDWIDE, $12.12, symbol WYN on New York, rose 35% this week after it reported higher first-quarter profits. In the three months ended March 31, 2009, Wyndham’s earnings, excluding one-time items, rose 19.4%, to $74 million, or $0.41 a share, from $62 million, or $0.35 a share, a year earlier. Analysts had been expecting $0.35 a share. Revenue fell 11%, to $901 million from $1.01 billion, as Wyndham’s hotels saw fewer guests. Moreover, the company gets about a third of its revenue from its overseas operations, and the higher U.S. dollar hurt their contribution. Despite the lower revenue, Wyndham’s profits were higher than in the year-earlier period. This was mainly because the company took steps to lower its costs, including its marketing and administrative expenses. Wyndham is one of the world’s largest hospitality companies, with 7,000 franchised hotels worldwide. It operates under a number of quality brands, including Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Wingate by Wyndham,…