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 year.
Weight Watchers shares were up $5.37, or 11.31% during premarket trading Tuesday.
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.
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