Weight Watchers (NASDAQ:WTW) announced its latest quarterly earnings results after the bell Tuesday, which was below analysts’ guidance, while its sales also disappointed, sending WTW stock on a tailspin after Wall Street closed for the day.
The New York City-based diet and health services provider said that for its fourth quarter of fiscal 2018, it posted adjusted earnings of 46 cents per share, below the 60 cents per share that Wall Street called for in a Refinitiv survey. Revenue was also underwhelming at $330 million, roughly $17 million below analysts’ projection, per Refinitiv.
For its fiscal 2019, Weight Watchers sees revenue as reaching about $1.4 billion by year’s end. Analysts see this figure as coming in at around $1.66 billion, according to a poll of analysts conducted by Refinitiv.
“While we are proud of our accomplishments in 2018, we had a soft start to 2019 versus last year’s strong performance with the launch of WW Freestyle,” Weight Watchers CEO Mindy Grossman said in a statement. “Given our Winter Campaign did not recruit as expected, we have been focused on improving member recruitment trends.”
Grossman added that the company is righting its ship with an improved call-to-action, while also optimizing its media mix. She has been instrumental towards turning the company into a business that helps people eat healthy in a mindful manner, rather than count calories.
WTW stock is down about 27.3% after hours on Tuesday off the back of a weak quarter that was below the mark in most major categories. Shares had been up about 0.6% during regular trading hours.