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

By Dividend.com Staff,

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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 Nasdaq, Inc.

Created by Dividend.com

This article appears in: Investing Stocks
Referenced Stocks: WTW

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