NYSE$WH

Wyndham Hotels & Resorts Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Wyndham's Q4 2020 results were announced, showing a decrease in revenue but strong adjusted EBITDA and free cash flow generation.

Wyndham Hotels & Resorts reported a net loss of $7 million for Q4 2020, with revenues declining to $296 million from $492 million in the same quarter of the previous year. Despite the revenue decrease, the company highlighted strong adjusted EBITDA and free cash flow generation. The company also increased its dividend by 100%.

  • Diluted loss per share was $0.08, and adjusted diluted earnings per share was $0.07.
  • Net loss was $7 million, with adjusted net income at $7 million.
  • Adjusted EBITDA was $56 million.
  • Global comparable RevPAR decreased by 33% year-over-year.

Headline financials

Total Revenue

$296M

Previous: $492M-39.8%
EPS (adj)

$0.07

Previous: $0.81-91.4%
Global RevPAR

$23.84

Previous: $36.36-34.4%
Global Rooms

795.9K

No prior period
U.S. RevPAR

$27.80

Previous: $40.09-30.7%
International RevPAR

$17.37

Previous: $30.29-42.7%
Capital Expenditures

$10M

Previous: $15M-33.3%
Free Cash Flow

$34M

Previous: $76M-55.3%
Net Income

-$7M

Previous: $64M-110.9%
Operating Income

$21M

Previous: $103M-79.6%
Gross Profit

$112M

Previous: $220M-49.1%
Cash & Equivalents

$493M

Previous: $94M+424.5%
Total Assets

$4.64B

Previous: $4.53B+2.4%
Stock-Based Comp

$6M

Previous: $5M+20.0%

Revenue & EPS history

Wyndham · Revenue · Quarterly

$296M

Q4 2020-39.8%vs Q4 2019
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

Wyndham · $202M total across 1 segment · Q4 2020

  • Hotel Franchising
    $202M-32.7%

Forward guidance

Wyndham is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead.

Tailwinds

  • Net rooms growth of 1% to 2%.
  • Every point of RevPAR change versus 2020 is expected to generate approximately $2.5 million of adjusted EBITDA change versus 2020. This estimate does not include impacts from license fees or the marketing funds.
  • License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements.
  • Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues. As such, the Company expects no meaningful impact to full-year 2021 adjusted EBITDA from the marketing, reservation and loyalty funds.
  • The Company does not expect any meaningful special-item cash outlays in 2021.

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 Q4 2020

Historical avgQ4 2020

+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

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