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