Weight Watchers' stock soars after results beat expectations, outlook raised
Shares of Weight Watchers International Inc. rocketed 12% in after-hours trade Wednesday, after the weight management services company reported a narrower-than-expected first-quarter loss and raised its full-year profit outlook. For the latest quarter, losses widened to $10.3 million, or 17 cents a share, from $5.4 million, or 10 cents a share, in the same period a year ago. The FactSet per-share loss consensus was 18 cents. Revenue fell 4.7% to $306.9 million, missing the FactSet consensus of $308.9 million. Subscribers at the end of the quarter were 4.8% higher than a year ago, while total attendance at meetings increased 5.8%. The company raised its full-year 2016 earnings-per-share outlook to a range of 80 cents to $1.05 from 70 cents to $1.00, according to FactSet. "Our first quarter loss was smaller than we expected, and for the first time since 2012 we grew our total subscribers year-over-year, clearly demonstrating that our business is turning around," said Chief Executive Jim Chambers. The stock had plunged 45% year to date through Wednesday's close, while the S&P 500 gained 0.4%.
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