Weight Watchers’ Q1 Profit Jumps 65%; Guidance Raised (WTW)

By Dividend.com Staff,

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Weight management specialist Weight Watchers International, Inc. ( WTW ) on Friday said its first quarter profit surged 65% from last year, beating analyst estimates.

The New York-based company reported first quarter net income of $73.6 million, or $1 per share, compared with $44.6 million, or 58 cents per share, in the year-ago period.

Revenue rose 5% from last year to $503.4 million.

On average, Wall Street analysts expected a smaller profit of 89 cents per share, on lower revenue of $478.31 million.

Looking ahead, the company boosted its full-year 2011 earnings guidance to a range of $3.75 to $4 per share, up from a prior estimate of $3.50 to $3.85. Analysts currently expect $3.70 per share for the year.

Weight Watchers shares rose $1.04, or +1.4%, in premarket trading Friday.

The Bottom Line
Shares of Weight Watchers ( WTW ) have a .93% dividend yield, based on last night's closing stock price of $74.96. The stock has technical support in the $65-$71 price area. If the shares can firm up, we see overhead resistance around the $79 all-time high levels.

Weight Watchers International, Inc. ( WTW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: WTW

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