Weight Watchers’ Q2 Profit, Revenue Beat View; Forecast Could Miss; Shares Plunge (WTW)

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Weight management specialist Weight Watchers International, Inc. ( WTW ) on Friday posted better-than-expected second quarter earnings and raised its full-year forecast, which could still come in below analyst expectations.

The New York-based company reported second quarter net income of $87 million, or $1.17 per share, compared with $56.3 million, or 73 cents per share, in the year-ago period.

Revenue rose 29% from last year to $486 million.


On average, Wall Street analysts expected a smaller profit of $1.12 per share, on lower revenue of $470.16 million.

Looking ahead, the company boosted its full-year earnings outlook to a range of $3.85 to $4.05 per share, up from a prior estimate of $3.75 to $4. Analysts are currently looking for $3.95 per share for the year.

Weight Watchers shares fell $7.55, or -10%, in premarket trading Friday.

The Bottom Line
Shares of Weight Watchers ( WTW ) have a .94% dividend yield, based on last night's closing stock price of $74.45. The stock has technical support in the $65-$70 price area. If the shares can firm up, we see overhead resistance around the $80 price level.

Weight Watchers International, Inc. ( WTW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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 The NASDAQ OMX Group, Inc.

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