* Q3 profit 84/shr vs 57/shr last year
* Adj Q3 earns 68/shr vs Street view 63/shr
* Revenue up 5 pct to $1.07 bln
* Sees 2011 EBITDA $925 mln - $955 mln
* Shares up 2 pct
(Rewrites first paragraph, adds byline, outlook, comments)
By Helen Chernikoff
NEW YORK, Oct 26 A recovering economy and cost
controls helped Wyndham Worldwide Corp (WYN.N) raise its
outlook for the year and post a larger-than-expected
third-quarter profit increase on Tuesday, sending its shares up 2
Wyndham, which franchises such hotel brands as Super 8 and
Days Inn, forecast adjusted earnings before interest, taxes,
depreciation and amortization for 2011 in the range of $925
million to $955 million.
That handily beats consensus estimates of $914 million,
said FBR Capital Markets analyst Patrick Scholes.
"If nothing else, that should make the stock go higher
today," he said.
Wyndham, the world's largest timeshare operator, said its
timeshare segment makes up about half its annual revenue, while
vacation exchange and rentals make up 31 percent. Lodging makes
up almost 20 percent.
The company surprised Wall Street because of lower costs in
its timeshare segment, said Scholes. He thought they would be
up around 7 percent, but they were flat.
Wyndham reported third-quarter profit of $156 million, or
84 cents per share, compared with $104 million, or 57 cents per
share, a year earlier.
Stripping out a benefit related to an IRS examination of
the company's former parent and a loss on a note buyback, the
company reported earnings of 68 cents per share, which beat
analysts' average expectations of 63 cents per share, according
to Thomson Reuters I/B/E/S.
Revenue rose 5 percent to $1.07 billion.
The bulk of Wyndham's more than 7,100 hotels fall into the
low-cost, or economy, segment. Leisure travel accounts for
about 70 percent of that business, FBR's Scholes said.
"The consumer is traveling more," Chief Financial Officer
Tom Conforti told Reuters in an interview. "They're coming back
in a moderate way."
Wyndham shares were up 58 cents, or 2 percent, at $30.46 in
thin premarket trading.
Rival Starwood Hotels & Resorts Worldwide Inc HOT.N is
slated to report its third quarter earnings on Thursday.
(Reporting by Helen Chernikoff; Editing by Derek Caney)