Weight Watchers International Inc.’s (WTW) shares are still down by 33% in mid-day trade on Wednesday after crashing on a disappointing earnings report a day earlier.
The dieting company missed market expectations for its fourth-quarter 2018 revenues, which rose around 6% to $330.4 million. Net income declined over 30% to $43.8 million, or $0.63 per share, on a GAAP basis. Adjusted EPS was $0.46, below expectations.
For the full year of 2019, Weight Watchers gave a revenue guidance of approx. $1.4 billion and EPS guidance of $1.25 to $1.50, both of which were below Street estimates.
The company said it had a significant year in 2018 and while it was disappointed at how 2019 had started, it still has confidence that its strategy of providing holistic wellness solutions is on the right track to support long-term growth.
Weight Watchers also stated that Oprah Winfrey will play a key role in its upcoming TV and digital marketing campaign. Based on data from FactSet and CNBC, Oprah Winfrey holds a nearly 8% stake in the company, amounting to over 5 million shares, and the talk show host apparently lost around $48 million after the stock crashed following the earnings announcement on Tuesday.
During the quarter, the company’s total paid weeks increased 22.8% year-over-year and the End of Period subscribers were also up by 22.4%.
Several analysts have downgraded the stock from Buy to Hold following the earnings report.
Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per
Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the
Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5