Weight Watchers International (NYSE: WTW)
Weight Watchers Earnings & Technicals
Friday before the market opened, shares of Weight Watchers nose dived on earnings that were really ugly as shares shaved off more than 20% in the premarket session on heavy volume. They reported a Q4 loss of 3 cents per share on $259.2 million in revenue while analysts were looking for earnings of 2 cents per share on $257 million in revenue. Shares closed Thursday at $15.36 and are looking to open around $11.25, a 26% decrease in value. Shares have recently had a lot of positive news with Oprah Winfrey getting involved with the company, however, this surprise earnings miss is really punishing shares and wiping away most of the gains for the past few months. Shares look to open right on support at the 200-day moving average sitting at $11.25 so we’ll have to see if it holds are trades through. If you’re looking to make a trade keep in mind there will be a lot more volatility than normal and may be best to let thing cool off a bit. Currently analysts have an average price target of $20.00 but there will definitely be some new views coming out over the next couple days based off these earnings.
Weight Watchers International, Inc. engages in the provision of weight management services. It operates through the following geographical segments: North America, United Kingdom, Continental Europe, and Other. The company was founded by Jean Nidetch in 1963 and is headquartered in New York, NY. (MarketWatch)