Wyndham Hotels & Resorts (NYSE:WH) stock gained sharply on Tuesday after topping analyst estimates for second quarter earnings and raising full-year earnings forecasts.
For the second quarter, the company reported non-GAAP EPS of $1.07, beating estimates by $0.13, alongside revenue of $386M that edged out expectations by $27.1M. Global revenue per available room (RevPAR) also rose 23% from the prior year.
“We kicked off our high-demand summer season with the strongest Memorial Day we’ve ever experienced, as guests traveled further, stayed longer and spent more at our hotels than they did pre-pandemic,” CEO Geoffrey A. Ballotti said. “Our business experienced another strong quarter performing above both last year and 2019 as international recovery accelerated and our development teams grew our pipeline to a record level.”
As of the end of the quarter, the company’s development pipeline consisted of 1,600 hotels and approximately 208,000 rooms. Per company filings, 62% of the pipeline is international and 78% of projects are new constructions. Approximately 36% of these planned constructions have already broken ground.
Moving forward, management raised net income forecasts for the full year to a range of $323M to $334M from a prior forecast of $317M to $329M based upon bullish travel demand expectations. Additionally, adjusted diluted EPS is anticipated to reach a range of $3.51 to $3.63, above the previous forecast of $3.39 to $3.51. Wall Street consensus stood at $3.56 prior to the release.
Shares rose 1.46% in Tuesday’s after hours trading. Read more on the recent performance for the stock.