Weight management specialist Weight Watchers International, Inc
) late Wednesday posted disappointing earnings results, sending its
shares plunging in aftermarket trading.
The New York-based company reported first quarter net income of
$54.6 million, or 74 cents per share, down from $73.6 million, or
$1 per share, in the year-ago period.
Revenue was mostly flat from last year at $503.5 million.
On average, Wall Street analysts expected a higher profit of 78
cents per share, on larger revenue of $505.70 million.
Looking ahead, WTW raised its full-year earnings outlook to a
range of $4.60 to $4.80 per share, up from a prior forecast of
$4.20 to $4.60. Analysts expect a still-higher $4.96 per share for
Weight Watchers shares closed up slightly in Wednesday trading,
but the stock was indicated down more than 16% after hours.
The Bottom Line
Shares of Weight Watchers (
) have a .92% dividend yield, based on today's closing stock price
of $76.01. The stock has technical support in the $60-$65 price
area. If the shares can firm up, we see overhead resistance around
the $75-$80 price levels.
Weight Watchers International, Inc (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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