Weight Watchers International Earnings: Here’s Why the Stock is Falling Now

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 down 7.51%.

Weight Watchers International, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2.21% to $1.39 in the quarter versus EPS of $1.36 in the year-earlier quarter.

Revenue: Decreased 4.05% to $465.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Weight Watchers International, Inc. reported adjusted EPS income of $1.39 per share. By that measure, the company beat the mean analyst estimate of $1.10. It beat the average revenue estimate of $459.34 million.

Quoting Management: “Current business conditions are challenging,” commented Jim Chambers, the Company’s newly appointed CEO. “As an offset, we are making good progress with our cost savings agenda. We know there’s much more to be done to improve overall business performance. While I’m excited about the team’s plans for the January 2014 campaign, the 2013 recruitment weakness means that we’ll start 2014 with fewer active members and therefore a lower earnings base.”

Key Stats (on next page)…

Revenue decreased 4.48% from $486.93 million in the previous quarter. EPS increased 59.77% from $0.87 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.98 and has not changed. For the current year, the average estimate has moved up from a profit of $3.67 to a profit of $3.70 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)