Hudson Securities Previews Wyndham Worldwide Earnings (WYN)

Earlier this morning, Hudson Securities published a research note previewing Wyndham Worldwide's second quarter earnings. The analysts expect 2Q10 EPS of $0.39, a penny below the Street and within the range of WYN's $0.38-$0.42 guidance.

Hudson estimates that 28% of WYN's EBITDA for the last quarter will come from lodging. The company stated that WYN will not replicate the performance of other similar businesses reporting earnings over the past few weeks, as these companies focused on high-end hotels and WYN does not.

The analysts added that vacation exchange and rental will contribute $59 million, or 30% of second quarter total EBITDA. This is principally because "the vacation business is a relatively mature business, so we don't expect to see strong same-store year-over-year revenue growth." They added, however, that "acquisitions should contribute to meaningful year-over-year growth.

Lastly, vacation ownership is expected to make up 50% of EBITDA, at an estimate of $97 million. Hudson expects this portion of the company to outperform, as "WYN's flexible points-based timeshare product is much easier to sell in this more challenging economic environment."