Weight management service, Weight Watchers International, Inc.(
WTW ) reported a decline in profits for the
quarter, but beat analysts expectations Tuesday.
The New York, NY based company reported third quarter earnings
of $67.4 million, or $1.20 a share, down 16% from last years
earnings of $80.7 million, or $1.09 a share. Reported earnings for
the quarter beat analysts estimates of $1.05 a share.
Revenue was reported at $430.6 million for the quarter, up from
$428.4 million last year. Analysts expected $422.8 million.
Although, the company's online business increased by 20% to 2.05
million subscribers this year, quarterly earnings were offset by
higher marketing and administrative costs.
On average, analysts are expecting EPS of $4.11 a share for the
Weight Watchers shares were up $5.37, or 11.31% during premarket
The Bottom Line
Shares of Weight Watchers ( WTW ) have a 1.47%
dividend yield, based on last night's closing stock price of
$36.55. The stock has technical support in the $30-$31 price area.
If the shares can firm up, we see overhead resistance around the
$40-$44 price levels.
Weight Watchers International, Inc.( WTW )
is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 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 .
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