Weight management specialist Weight Watchers International, Inc.
) on Thursday posted better-than-expected fourth quarter earnings
and provided at 2011 forecast that wowed investing, sending its
shares soaring in premarket trading.
The New York-based company reported forth quarter net income of
$48.9 million, or 66 cents per share, compared with just $18.7
million, or 24 cents per share, in the year-ago period. Excluding
items, adjusted profit was 64 cents per share.
Revenue jumped almost 15% from last year to $356.7 million.
On average, Wall Street analysts expected a smaller profit of 56
cents per share, on lower revenue of $321 million.
The company's real surprise came in its guidance. For 2011, WTW
said it expects full-year earnings to range from $3.50 to $3.85 per
share, which would absolutely blow away analysts' view for $2.77
Weight Watchers shares surged $14.88, or +33%, in premarket
The Bottom Line
Shares of Weight Watchers (
) have a 1.56% dividend yield, based on last night's closing stock
price of $44.92. The stock is blowing through all-time high levels
of $57-$58 a share this morning. We'll see if this level of
overhead resistance plays a role in the stock as the day
Weight Watchers International, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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