Weight Watchers International, Inc. Stock Surges on Q1 Earnings Beat

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Weight Watchers International, Inc. (NYSE:WTW) stock was surging after the bell as the company unveiled its latest quarterly earnings results, which came in well ahead of expectations.

Weight Watchers International, Inc.The company announced that its first quarter ended with the most subscribers its ever had, helping shares soar. Its earnings tallied up to $39.1 million for the period, or 56 cents per share, a 265.42% increase from the $10.7 million, or 16 cents per share it earned during the year-ago quarter.

Analysts were expecting Weight Watchers to earn 6 cents per share in the period, according to data compiled by FactSet. Revenue was also up to $408.2 million from $329.1 million in the year-ago quarter, topping the Wall Street consensus estimate of $392 million, according to data compiled by FactSet.

The company ended the quarter with 4.6 million subscribers, the highest it’s ever had in its history, which is also an improvement of 1 million compared to the year-ago quarter. Weight Watchers also updated its guidance for fiscal 2018 to now be in the range of $3 to $3.20 per share, better than its previous outlook of $2.40 to $2.70 per share.

“Based on our strong performance and continued momentum, we expect our annual revenue to grow by almost 20%,” Chief Financial Officer Nick Hotchkin said in a statement during its quarterly report.

“Member engagement has been incredible with members staying longer than ever before,” said Mindy Grossman, the Company’s President and CEO. “Average retention is now well over 9 months.”

WTW shares were soaring more than 7.2% after the bell Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/weight-watchers-international-inc-wtw-3/.

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