Weight Watchers Q3 Profit Falls 16% on Higher Costs; Adjusted Net Beats View (WTW)

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Weight management company Weight Watchers International, Inc. ( WTW ) late Tuesday said its third quarter profit fell 16% from last year due to higher costs and one-time items, but adjusted results beat analyst expectations.

The New York-based company reported third quarter net income of $44.4 million, or 59 cents per share, compared with $52.6 million, or 68 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 69 cents per share.

Revenue rose 2% from last year to $330.6 million.

On average, Wall Street analysts expected a smaller adjusted profit of 64 cents per share, on lower revenue of $327.4 million.

Looking ahead, the company narrowed its full-year outlook to a range of $2.42 to $2.47 per share, compared with a prior guidance of $2.35 to $2.50 per share, citing a one-time charge for the more. Analysts currently expect $2.47 for the year.

Weight Watchers shares fell $1.32, or -3.8%, in premarket trading Wednesday.

The Bottom Line
Shares of Weight Watchers ( WTW ) have a 1.99% dividend yield, based on last night's closing stock price of $35.17. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $40 price level.

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 The NASDAQ OMX Group, Inc.

Created by Dividend.com

This article appears in: Investing , Stocks

Referenced Stocks: WTW

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