Here's What Analysts Are Forecasting For Wyndham Hotels & Resorts, Inc. (NYSE:WH) After Its Full-Year Results

Wyndham Hotels & Resorts, Inc. (NYSE:WH) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Wyndham Hotels & Resorts reported US$1.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.91 beat expectations, being 3.5% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Wyndham Hotels & Resorts

Following last week's earnings report, Wyndham Hotels & Resorts' seven analysts are forecasting 2023 revenues to be US$1.52b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 8.4% to US$3.68 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.48b and earnings per share (EPS) of US$3.67 in 2023. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$88.44, implying that the uplift in sales is not expected to greatly contribute to Wyndham Hotels & Resorts's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Wyndham Hotels & Resorts, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$82.00 per share. This is a very narrow spread of estimates, implying either that Wyndham Hotels & Resorts is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Wyndham Hotels & Resorts' revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2023 being well below the historical 2.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Wyndham Hotels & Resorts is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Wyndham Hotels & Resorts going out to 2025, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for Wyndham Hotels & Resorts (of which 1 is a bit concerning!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.