Shares of hotel brand Wyndham Worldwide Corporation (NYSE: WYN) jumped as much as 11.1% in trading Wednesday after reporting first-quarter 2017 earnings. At 3:45 p.m. EDT on Wall Street, shares were still up an impressive 9.6% on the day.
Revenue for the quarter rose just 1% to $1.32 billion, but net income rose 47% from a year ago to $141 million, or $1.33 per share. Adjusted for one-time items, earnings were $1.14 per share, beating Wall Street's estimate by three cents.
Image source: Getty Images.
Management also said it still expects full-year revenue of $5.80 billion to $5.95 billion and adjusted earnings of $5.98 to $6.18 per share, based on 105.5 million shares outstanding.
First-quarter results don't show tremendous growth, but margins are improving slightly, and that's what had investors pushing shares higher. Keep in mind that growth is still in the low single-digits, and it isn't expected to pick up significantly soon. With shares trading at 18 times trailing earnings, shares are pretty expensive for a slow-growth stock. For that reason, I'll sit out today's pop, but look for opportunities if shares dip to get in at a better value for this hotel industry leader.
10 stocks we like better than Wyndham WorldwideWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now...and Wyndham Worldwide wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of April 3, 2017.