Wyndham Worldwide Corporation (WYN) has reported a 17.14 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $164 million, or $1.53 a share in the quarter, compared with $140 million, or $1.21 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $146 million, or $1.35 a share compared with $113 million or $0.98 a share, a year ago.
Revenue during the quarter went up marginally by 0.69 percent to $1,320 million from $1,311 million in the previous year period. Gross margin for the quarter expanded 94 basis points over the previous year period to 96.21 percent. Total expenses were 80.76 percent of quarterly revenues, down from 84.13 percent for the same period last year. This has led to an improvement of 338 basis points in operating margin to 19.24 percent.
Operating income for the quarter was $254 million, compared with $208 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $318 million compared with $1,373 million in the prior year period.
"In 2016, we delivered earnings growth and free cash flow that were both in line with our targets despite headwinds from a higher provision for loan losses and foreign exchange rates," said Stephen P. Holmes, chairman and chief executive officer. "We achieved these results through consistent execution, careful expense management, and continued disciplined capital allocation."
For the fiscal year 2017, Wyndham Worldwide Corporation expects revenue to be in the range of $5,800 million to $5,950 million. The company projects adjusted net income to be in the range of $637 million to $658 million. It projects diluted earnings per share to be in the range of $5.90 to $6.10 on adjusted basis.
Operating cash flow falls marginally
Wyndham Worldwide Corporation has generated cash of $973 million from operating activities during the year, down 1.82 percent or $18 million, when compared with the last year.
The company has spent $353 million cash to meet investing activities during the year as against cash outgo of $302 million in the last year.
The company has spent $586 million cash to carry out financing activities during the year as against cash outgo of $675 million in the last year period.
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