What is driving Wyndham Hotels & Resorts Inc (NYSE: WH) stock

Free $100 Forex No-Deposit Bonus

Wyndham Hotels & Resorts Inc (NYSE: WH) stock surged over 10% on 5th May, 2020 (as of 12:43 pm GMT-4; Source: Google finance) after the company posted better than expected results for the first quarter of FY 20. The company has reported 8% increase in the adjusted net income to $47 million. At the end of March, 2020, the Company had $749 million of cash on hand and $2.9 billion of debt outstanding, out of which $2.4 billion was first lien debt.

Moreover, during the first quarter of 2020, the Company had opened 58 new hotels of total 6,200 rooms, a year-over-year, which is a decline of 47% as new construction openings were delayed in China and conversion volumes were significantly lower in the U.S. during March. The Company has retained 94.8% of its hotel system over the last one year compared to 94.7% during the same period last year. At the end of March, 2020, the Company’s hotel system consisted of about 9,300 properties and over 828,000 rooms, which is a 2% year-over-year increase. The Company’s development pipeline comprised of 1,500 hotels and approximately 189,000 rooms, which is a 4% year-over-year room increase, or 2% decline sequentially. About 58% of the Company’s development pipeline is international and 72% is new construction, out of which nearly 40% have broken ground.

WH in the first quarter of FY 20 has reported the adjusted earnings per share of 50 cents, beating the analysts’ estimates for the adjusted earnings per share of 31 cents, according to the Zacks Consensus Estimate. The company had reported 12 percent fall in the adjusted revenue to $410 million in the first quarter of FY 20, beating the analysts’ estimates for revenue by 10.92%.

Additionally, during the first quarter of 2020, the company has repurchased about 878,000 shares of its common stock for $45 million at an average price of $51.57 per share. The Company has suspended its share repurchase activities in March. The company had paid common stock dividends of $30 million, or $0.32 per share, in the first quarter of 2020.  Due to the significant adverse impact on the global economy and travel demand resulting from COVID-19, the Company had approved a reduction in the quarterly cash dividend policy from $0.32 per share to $0.08 per share, beginning with the dividend that is expected to be declared, at the company’s discretion, in the second quarter of 2020.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.