Weight Watchers (WTW) Stock Pummeled After Earnings

Shares of Weight Watchers International Inc. (WTW) were trading down -5.83 or -19.06 percent to $24.75 per share in pre-market trading on Friday, after the company reported earnings following the market close on Thursday. Weight Watchers stock had closed at $30.58, up +0.90 or +3.03 percent in Thursdayâ s regular trading session. Fourth quarter earnings missed expectations by $0.07 per share, sending the stock -20 percent lower in aftermarket trading.

While net income missed the mark, revenue beat analyst expectations by +$8 million; the aftermarket selloff was in large part due to the companyâ s lower than expected guidance for 2014.
New York City based Weight Watchers International Inc. is a global firm specializing in products and services for assisting people in losing weight and keeping it off. The company, founded by a New York homemaker in 1963currently operates in 30 countries globally. For the quarter ended on December 28th, 2013, the company reported net income of $30.8 million or $0.54 per share, the analyst consensus was for net income of $0.61. Fourth quarter revenue came in at $366.10 million, versus the consensus forecast of $357.98 million. In the same quarter last year, the company posted net income of $0.96 earnings per share. Weight Watchersâ revenue declined -10.9%, from $411.1 million in the same quarter last year. The decline in profits was in large part a function of a lower active subscription base at the onset of the quarter with lower recruitment throughout the period. Total paid weeks were off by -8.5 percent compared with 2012â s fourth quarter, while online paid weeks declined -6.5 percent and meeting paid weeks, which were down -10.9 percent. President and Chief Executive Officer Jim Chambers, said that, â

Published on Feb 14, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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