The Dividend Daily

Hotel operator Wyndham Worldwide Corporation (WYN) said Wednesday that its third quarter profit fell 28% on lower revenue, but results were still enough to beat analyst estimates, and the company raised its full-year revenue forecast.

The Parsippany, New Jersey-based company posted third quarter net income of $104 million, or 57 cents per share, compared with $142 million, or 80 cents per share, in the year-ago period. Excluding items, adjusted profit was 58 cents per share.

On average, Wall Street analysts expected a lower profit of 56 cents per share.

Revenue plunged 17% from last year, to $1.02 billion. This drop was partially offset by a drop in total expenses, which fell 18% in the period. Wyndham said that revpar, or revenue per available room, a key gauge of a lodging company’s health, plunged 17%, however.

Looking ahead, the company raised its full-year revenue outlook to a range of $775 million to $825 million, up from a prior estimate for $760 million and $810 million.

Wyndham Worldwide shares rose 31 cents, or +1.9%, in premarket trading Wednesday.

The Bottom Line
We removed shares of WYN from our “recommended” list last August 19, when the stock was trading at $18.70. The company has a dividend yield of .96%, based on last night’s closing stock price of $16.69. The stock has technical support in the $12-$14 price area. If the shares can firm up, we see overhead resistance around the $20 price level. We would remain on the sidelines for now.

Wyndham Worldwide Corporation (WYN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.