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NEW YORK (TheStreet) -- Weight Watchers International (WTW) - Get Report has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D.  TheStreet Ratings Team has this to say about their recommendation:

"We rate WEIGHT WATCHERS INTL INC (WTW) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• WEIGHT WATCHERS INTL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, WEIGHT WATCHERS INTL INC reported lower earnings of $1.72 versus $3.63 in the prior year. For the next year, the market is expecting a contraction of 64.0% in earnings ($0.62 versus $1.72).
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Consumer Services industry. The net income has significantly decreased by 152.3% when compared to the same quarter one year ago, falling from $30.80 million to -$16.10 million.
• Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.30%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 151.85% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
• WTW, with its decline in revenue, underperformed when compared the industry average of 7.6%. Since the same quarter one year prior, revenues fell by 13.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• The gross profit margin for WEIGHT WATCHERS INTL INC is rather high; currently it is at 54.73%. Regardless of WTW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WTW's net profit margin of -4.91% significantly underperformed when compared to the industry average.
• You can view the full analysis from the report here: WTW Ratings Report