Weight Watchers International, Inc. (NYSE:WTW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.71%.
Weight Watchers International, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 17.57% to $0.87 in the quarter versus EPS of $0.74 in the year-earlier quarter.
Revenue: Decreased 3.3% to $486.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Weight Watchers International, Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.62. It beat the average revenue estimate of $484.25 million.
Quoting Management: “As we previously indicated, the winter diet season proved to be challenging for recruitment across our businesses given a weak consumer backdrop and an intensely competitive environment. In response, we have made several adjustments to improve our position in the market with consumers, including new advertising campaigns. Further, we are gaining early traction with our cost savings program while continuing to work to innovate our core product offerings to better enable us to increasingly address the ever growing obesity epidemic,” commented David Kirchhoff, Chief Executive Officer of the Company.
Key Stats (on next page)…
Revenue increased 19.36% from $407.92 million in the previous quarter. EPS decreased 9.38% from $0.96 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.47 to a profit $1.17. For the current year, the average estimate has moved down from a profit of $4.75 to a profit of $3.62 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)