Categories Consumer, Markets

Weight Watchers’ stock continues to get battered post-earnings

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.

Weight Watchers stock crash
(Image Courtesy: Weight Watchers International)

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.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips.

Most Popular

Earnings calendar for the week of March 8

On the heels of lawmakers moving closer to passing the stimulus bill, inflations concerns gripped the market after Federal Reserve chief Jerome Powell at a meeting said the reopening would

Why Costco’s (COST) growth prospects might depend on beating costs, digital lag

Though the retail boom triggered by the pandemic was estimated to be short-lived initially, the shopping spree continued as customers stocked up on essential items, concerned about the persistent market

Gap (GPS) hopes to see a favorable recovery by the second half of 2021

Shares of Gap Inc. (NYSE: GPS) were up 5.8% in afternoon hours on Friday. The stock has gained 103% over the past 12 months. Gap reported mixed results for the

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top