Shares Plunge as Weight Watchers Slims Down
Weight Watchers (NYSE:WTW) reported first-quarter profit that missed expectations as the weight-loss company increased its marketing spending. Weight Watchers shares plunged in after-hours trading on Wednesday following its report.
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The weight-loss company earned $54.6 million, of 74 cents per share, for the quarter that ended March 31. That figure is down from $73.6 million, or $1 per share, in the same quarter last year. Its total revenue was essentially flat at $503.5 million.
Analysts were expecting Weight Watchers to earn 78 cents per share on revenue of $505.8 million. They were also expecting the weight loss company to earn $4.10 per share, excluding one-time adjustments.
Weight Watchers has updated its full-year guidance to reflect a recent tender offer, share buyback, and changes in business trends. The company has released its expectations of earning $4.60 to $4.80 per share for the year, which is an increase from its previous forecast of $4.20 to $4.60 per share. The update also includes a 50 to 55 cent per-share impact from the offer and the buyback.
Weight Watches’ shares rose 33 cents to close at $76.01 Wednesday. However, shares fell $12.02, or nearly 16 percent, in after-hours trading to $63.99. The stock has traded between $51.28 and $86.97 in the past 52 weeks.
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