Weight Watchers Loss Is a Gain for Investors
Weight Watchers shares surged even though it reported mixed quarterly results on Thursday.
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When Weight Watchers International Inc. (NASDAQ: WW) reported its most recent quarterly results after the markets closed on Thursday, it posted a net loss of $0.16 per share and $363.2 million in revenue. Consensus estimates had called for a net loss of $0.26 per share and $366 million in revenue for the fiscal second quarter, and the same period of last year reportedly had earnings of $0.56 per share and revenue of $408.2 million.
During the latest quarter, subscribers increased 0.9% over the prior year period, primarily due to the higher subscriber level at the start of fiscal 2019 compared with the start of last year. Digital Subscribers were up 7.2% and End of Period Studio + Digital Subscribers were down 10.4%.
Total paid weeks in the first week were up 4.2% year over year. Digital Paid Weeks increased 12.2% and Studio + Digital Paid Weeks decreased 8.6%.
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Looking ahead to the 2019 full year, the company expects to see EPS in the range of $1.35 to $1.55 and revenues of $1.4 billion.
Mindy Grossman, president and CEO, commented:
Trends improved sequentially throughout the quarter, resulting in 4.6 million subscribers at quarter end, up 1% year-over-year. We are confident that our strategy to focus on providing holistic wellness solutions leveraging our best-in-class weight management program is the right path to support long-term sustainable growth.
Shares of Weight Watchers were last seen up almost 19% at $24.14 on Friday, in a 52-week range of $17.58 to $20.70. The consensus price target is $28.09.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
