Weight Watchers | $WTW Stock | Shares Soar On Earnings Numbers

weight watchers

Weight Watchers International, Inc. (NYSE: WTW)



When we mention or hear the name  Weight Watchers  most people conjure up thoughts of people dieting or trying to lose weight, and Oprah Winfrey, the billionaire media mogul who has invested in Weight Watchers with her private capital. 

Not only has Oprah put money into the company but she has put their  products into her stomach. You see, she has been a vociferous advocate for the company and the products and even tweets about her progress while using them.

This help from the well-known celebrity as well as increased customer retention and increased subscribers (up 16%) helped earn the company a generous profit margin when they announced earnings on May 2, 2017. The earnings came in at $10.7 million  or about $0.16 per share.

To give you a sense of how good that is the same quarter last year produced a loss of $10.8 million . Revenues came in at $329 million dollars which was $19 million dollars more than this same time last year. The company seems to be firing on all cylinders.

Shares of the stock have traded in a 52-week range from a low of $9.37 to a high of $22.04. The shares closed the regular session at $21.19 which was down only $0.12 on the day. However shares soared to a high of $24.85  in the after-hours session closing $24.10 which equates to being up $2.91 or 13.73%.


WTW Chart

weight watchers
Weight Watchers Chart

The above price chart illustrates how shares traded in a very narrow range all day intraday in anticipation for the earnings report. Just after the earnings were announced, the chart clearly shows how the price rocketed up on the right, hitting a high of $24.85. Many traders and investors will be looking at the shares when they open for trading on Wednesday to see if they want to get in right away or wait for a price pull back.


Company Comments

Nick Hotchkin, the company’s chief financial officer, offered up a few comments,

“This is a multifaceted recovery,” he said in an interview. “It starts with the fact that our program is better.” He also stated that this is a  “strong start to the year,”.

Ray Debbane, chairman of the board stated this in relation to CEO Mindy Goodman being named the new boss,

“Weight Watchers has delivered a very successful winter season, solidifying the Company’s return to growth,”  “(Goodman) is the right CEO to empower the brand and unlock its full potential.”

Company Profile

Weight Watchers International, Inc., incorporated on March 7, 2006, is a provider of weight management services. The Company operates globally through a network of Company-owned and franchise operations. The Company’s branded products and services include meetings conducted by its franchisees, digital weight management products provided through its Websites, mobile sites and applications, products sold at meetings, licensed products sold in retail channels and magazine subscriptions and other publications.

The Company operates through four segments: North America, United Kingdom, Continental Europe (CE) and Other. It sells a range of products, including bars, snacks, cookbooks, food and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators and fitness kits, and certain third-party products, such as activity-tracking monitors.

The Company sells its products through its meetings business, online and to its franchisees. The non-members and non-subscribers can also purchase its products through its e-commerce platforms. It also issues other publications, such as cookbooks and food and restaurant guides with SmartPoints values.-GoogleFinance