The chart below shows how WH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WH sees a -2.22% change in stock price 10 days leading up to the earnings, and a +2.13% change 10 days following the report. On the earnings day itself, the stock moves by -0.58%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings and EBITDA Growth: Strong earnings reported with adjusted EBITDA and EPS growth of 7% and 10% respectively.
Operational Performance Improvement: System growth of 4% achieved, indicating robust operational performance.
Strong Cash Flow Generation: Generated over $265 million in adjusted free cash flow year-to-date, with nearly $380 million returned to shareholders.
Global Room Openings Growth: Opened over 17,000 rooms, bringing total year-to-date openings to more than 48,000 rooms globally, a 13% increase compared to last year.
Ancillary Fee Growth: Significant growth in ancillary fee streams, contributing positively to overall revenue growth.
Negative
Marketing Fund Revenue Surplus: In the third quarter of 2024, marketing fund revenues exceeded expenses by $12 million, a decrease from the $17 million surplus reported in the same quarter last year.
RevPAR Decline Trend: The company reported a decline in RevPAR of 4% in the fourth quarter, following a 1% decrease in the third quarter, indicating a downward trend in revenue per available room.
RevPAR Growth Outlook: Despite a strong year-to-date performance, the company anticipates a lower RevPAR growth rate in the fourth quarter compared to the previous year, reflecting ongoing economic challenges.
Decline in Free Cash Flow: The adjusted free cash flow for the third quarter was $96 million, significantly lower than the $267 million reported year-to-date, indicating a decline in cash generation capabilities.
Interest Expense Impact: The company faced higher interest expenses, which partially offset the benefits from adjusted EBITDA growth, impacting overall profitability.
Wyndham Hotels & Resorts, Inc. (WH) Q3 2024 Earnings Call Transcript
WH.N
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