When Weight Watchers International Inc. (NYSE: WTW) reported its most recent financial results after the markets closed on Thursday, the company said that it had $0.67 in earnings per share (EPS) and $342 million in revenue. That compared with consensus estimates from Thomson Reuters of $0.51 in EPS and revenue of $330 million. In the second quarter of last year, it posted EPS of $0.46 and $309.8 million in revenue.
At the end of the second quarter, subscribers had increased by 20.1% year over year, driven by growth in all major geographic markets. Meeting Subscribers were up 12.5% and Online Subscribers were also up 25.8%.
Separately, Total Paid Weeks were up 16.8%, consisting of an increase of 9.7% in Meeting Paid Weeks and a 22.6% increase in Online Paid Weeks.
In terms of guidance for the 2017 full year, the company raised its EPS guidance to a range of $1.57 to $1.67. There are consensus estimates calling for $1.29 in EPS and $1.26 billion in revenue for the full year.
Mindy Grossman, president and CEO, commented:
Weight Watchers’ strong performance is due to the broad-based improvements the Company has implemented, including updating the program, enhancing the digital offerings, and refreshing the meetings experience. With a proven, science-based program, strong digital capabilities, and the support and community offered by thousands of coaches and millions of members worldwide, Weight Watchers offers a strong value-proposition that positions the Company for continued growth. By leveraging technology, innovation, and the power of community, Weight Watchers will be able to realize the full growth potential of the business and make a major impact on our members’ lives.
Shares of Weight Watchers were trading up more than 25% at $41.47 Friday morning, with a consensus analyst price target of $30.00 and a 52-week range of $9.37 to $39.71.