Wyndham Worldwide Cuts FY17 Forecast Below Market Estimates On Weather Events

(RTTNews) - Hospitality company Wyndham Worldwide (WYN) on Wednesday updated its projections for the full year 2017 to reflect the financial effects of the recent weather events on both third quarter and fourth quarter results.

The company now expects full-year adjusted net income of $618 million to $628 million, adjusted earnings per share of $5.95 to $6.05, and adjusted EBITDA of $1.380 billion to $1.395 billion.

Revenues for the year are now expected to be $5.80 billion to $5.85 billion.

Previously, the company expected earnings per share of $6.04 - $6.24 and revenue of $5.80 billion to $5.95 billion.

On average, 10 analysts polled by Thomson Reuters expect earnings of $6.18 per share on revenues of $5.87 billion for the year. Analysts' estimates typically exclude special items.

The company said the third quarter weather events will affect its fourth quarter results, particularly in its Vacation Ownership and Hotel Group segments.

The Company estimates the weather events will reduce fourth quarter revenues by $20 to $30 million, net income by $9 to $15 million, and EBITDA by $15 to $23 million.

For the full year, Wyndham Worldwide estimates the weather events will reduce revenues by $33 to $43 million, net income by $15 to $21 million and EBITDA by $24 to $32 million.

"While the Company's business interruption insurance may ultimately offset a portion of these effects, any such insurance recoveries are unlikely to be realized in 2017," the company said in its statement.