Hotel franchising company Wyndham (NYSE:WH) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Wyndham reported revenues of $321 million, down 3.9% year on year, missing analyst expectations by 0.9%. It was a weaker quarter for the company, with underwhelming earnings guidance for the full year.

Is Wyndham buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Wyndham's revenue to decline 1.5% year on year to $308.3 million, improvement on the 15.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.74 per share.

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing 5 downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Wyndham's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Carnival delivered top-line growth of 22% year on year, inline with analyst estimates and Nike reported revenues up 0.3% year on year, exceeding estimates by 1.1%. Carnival traded down 4.1% on the results, Nike was up 3%.

Read our full analysis of Carnival's results here and Nike's results here.

The fears around raising interest rates have been putting pressure on stocks and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 5.4% over the last month. Wyndham is down 6.8% during the same time, and is heading into the earnings with analyst price target of $89.4, compared to share price of $70.68.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.