PARSIPPANY, N.J. (AP) — Wyndham Worldwide Corp. said Friday that its fourth-quarter net income rose 6 percent as revenue across most of its businesses increased. But its 2014 earnings outlook missed expectations, and its shares dropped.
The hotel and resorts chain also said its board of directors authorized a 21 percent increase in its shareholder dividend to 35 cents per share from 29 cents per share. The dividend is expected to be declared in the first quarter.
Besides its namesake chain, Wyndham also owns hotels under the Ramada and Days Inn brands.
Wyndham said net income rose to $86 million, or 65 cents per share, in the three months ending Dec. 31, up from $81 million, or 57 cents per share, a year earlier.
Adjusted to remove one-time items, earnings were 73 cents per share. That matched what analysts were expecting, according to FactSet.
Revenue rose 9 percent to $1.2 billion from $1.1 billion. That beat the $1.17 billion analysts expected.
For 2013, the company reported earnings of $432 million, or $3.21 per share, on revenue of $5 billion. That was up from earnings of $400 million, or $2.75 per share, on revenue of $4.53 billion a year earlier.
For 2014, the company raised its earnings outlook to between $4.18 per share and $4.28 per share, above its previous forecast between $4.12 per share and $4.22 per share. It still expects revenue between $5.25 billion and $5.35 billion.
But analysts expected higher earnings of $4.31 per share on revenue of $5.33 billion.
The company, which is based in Parsippany, N.J., runs about 7,490 properties with over 645,400 rooms.
Shares fell $4.71, or 6.5 percent, to $67.67 in morning trading Friday. Its shares are up more than 13 percent for the past year.