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.
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