Weight control specialists Weight Watchers International, Inc. (
) said late Thursday that its first quarter profit fell 5.7% from
last year, but adjusted results still beat analyst
The New York-based company reported first quarter net income of
$44.6 million, or 58 cents per share, compared with $47.3 million,
or 61 cents per share, in the year-ago period. Revenue fell 1% from
last year, to $388 million.
On average, Wall Street analysts expected a smaller profit of 56
cents per share, on lower revenue of $365.7 million.
Looking ahead, the company reaffirmed its full-year 2010
earnings outlook of $2.25 to $2.50 per share.
CEO David Kirchhoff said in a statement that "Trends in the
second quarter of fiscal 2010 have been much more favorable
following the launch of our Spring marketing campaigns."
Weight Watchers shares were mostly flat in premarket trading
The Bottom Line
We have avoided shares of WTW since our early June 2008 coverage
began, when the shares traded at $42. The company has a 2.54%
dividend yield, based on last night's closing stock price of
$27.53. The stock has technical support in the $24 price area. If
the shares can firm up, we see overhead resistance around the
$30-$32 price levels. We would remain on the sidelines for now.
Weight Watchers International, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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