NYSE$WH

Wyndham Hotels & Resorts Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Wyndham's Q2 2021 results reflected a strong recovery driven by increased travel demand and strategic growth initiatives.

Wyndham Hotels & Resorts reported a strong second quarter in 2021, marked by a significant increase in net income and adjusted EBITDA compared to the previous year. The company saw substantial growth in RevPAR and fee-related revenues, driven by increased travel demand and effective management of its franchise business model. Wyndham also increased its quarterly dividend by 50% and provided a positive full-year 2021 outlook.

  • Diluted earnings per share was $0.73, compared to a diluted loss per share of $1.86 in Q2 2020.
  • Net income was $68 million, compared to a net loss of $174 million in Q2 2020.
  • Global RevPAR increased 110% compared to Q2 2020 but declined 17% compared to Q2 2019 in constant currency.
  • The Board of Directors authorized a 50% increase in the quarterly cash dividend to $0.24 per share.

Headline financials

Total Revenue

$406M

Previous: $258M+57.4%
EPS (adj)

$0.95

Previous: $0.10+850.0%
Global RevPAR

$36.92

Previous: $17.31+113.3%
Global Rooms

798.0K

Previous: 813.0K-1.8%
U.S. RevPAR

$48.37

No prior period
International RevPAR

$18.84

No prior period
U.S. Rooms

484.8K

No prior period
International Rooms

313.2K

No prior period
Capital Expenditures

-$17M

Previous: -$18M+5.6%
Free Cash Flow

$51M

Previous: -$192M+126.6%
Net Income

$68M

Previous: -$174M+139.1%
Operating Income

$133M

Previous: -$194M+168.6%
Gross Profit

$133M

Previous: -$194M+168.6%
Cash & Equivalents

$103M

Previous: $664M-84.5%
Total Assets

$4.24B

Previous: $4.85B-12.5%
Stock-Based Comp

$8M

Previous: $6M+33.3%

Revenue & EPS history

Wyndham · Revenue · Quarterly

$406M

Q2 2021+57.4%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Wyndham · $283M total across 1 segment · Q2 2021

  • Hotel Franchising
    $283M+55.5%

Forward guidance

The Company provided the following outlook for full-year 2021:

Tailwinds

  • Fee-related and other revenues of $1.16 billion to $1.19 billion.
  • Adjusted net income of $244 million to $254 million.
  • Adjusted EBITDA of $525 million to $535 million.
  • Adjusted diluted EPS of $2.60 to $2.70, based on an adjusted diluted share count of 94.0 million that excludes any future share repurchases.
  • Rooms growth of 1% to 2%.

Headwinds

  • A RevPAR increase of approximately 40% versus 2020, or a decline of approximately 16% compared to 2019.
  • Free cash conversion from Adjusted EBITDA of approximately 55%.
  • Outlook assumes continued recovery in travel demand in the second half of 2021.
  • The Company is providing certain financial metrics only on a non-GAAP basis because, without unreasonable efforts, it is unable to predict with reasonable certainty the occurrence or amount of all of the adjustments or other potential adjustments that may arise in the future during the forward-looking period, which can be dependent on future events that may not be reliably predicted.
  • Based on past reported results, where one or more of these items have been applicable, such excluded items could be material, individually or in the aggregate, to the reported results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.7%

Avg return

Earnings day

+0.9%

Avg return

5 days after

-1.0%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+8.8%

Q3 2018

Best reaction

-5.5%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-4.4%-4.5%
Q4 2025+5.6%+5.1%-5.0%
Q3 2025-5.5%-10.0%-9.5%
Q2 2025-1.0%-2.6%-3.3%
Q1 2025+0.1%-2.2%-3.0%
Q4 2024-1.6%+2.1%-17.5%
Q3 2024+8.0%+7.1%+16.0%
Q2 2024+3.4%+4.1%+4.8%
Q1 2024+5.4%+3.9%-1.6%
Q4 2023+1.2%+0.1%-0.3%
Q3 2023-2.5%-3.4%+5.3%
Q2 2023+2.0%+5.0%-1.2%
Q1 2023-1.5%+2.0%+3.9%
Q4 2022-2.0%-2.2%-15.9%
Q3 2022+4.4%+7.9%+3.0%
Q2 2022-1.8%-1.6%-1.0%
Q1 2022-1.0%-1.4%-11.8%
Q4 2021+4.5%+1.6%-1.7%
Q3 2021+5.7%+4.3%+0.8%
Q2 2021+3.7%+0.4%+3.9%
Q1 2021-0.1%-2.1%+0.9%
Q4 2020-2.6%-3.7%+10.6%
Q3 2020-2.2%+0.6%+21.1%
Q2 2020-1.5%-5.1%+13.6%
Q1 2020+6.5%+20.3%+37.6%
Q4 2016-1.6%-2.3%-34.7%
Q4 2019-1.6%-2.3%-34.7%
Q3 2019+0.7%+3.1%+9.7%
Q2 2019-4.7%-2.8%-16.2%
Q1 2019+2.5%+2.4%-2.8%
Q4 2018-0.3%+1.3%+0.1%
Q3 2017+8.8%+9.2%+10.7%
Q3 2018+8.8%+9.2%+10.7%
Q2 2017+0.2%-7.4%-8.9%
Q2 2018-2.0%+0.4%-3.1%
Q1 2018-3.8%-1.7%-6.7%
Q4 2017-3.8%-1.7%-6.7%
Q1 2017

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro