Weight Watchers (WTW) Stock Soars on Earnings Beat, Higher Guidance
NEW YORK (TheStreet) -- Weight Watchers (WTW) - Get Report stock is rising by 10.68% to $18.75 in after-hours trading on Thursday, following the release of the company's 2015 third quarter financial results after the market close this afternoon.
The provider of weight management services posted adjusted earnings of 39 cents per share for the most recent quarter, down by 41.9% from 68 cents per share for the year-ago period.
Revenue declined year over year by 20.8% to $273.3 million, down from $345.2 million for the 2014 third quarter
Analysts surveyed by Thomson Reuters had forecast for earnings of 29 cents per share on revenue of $266.5 million.
Weight Watchers raised its full-year 2015 earnings guidance to a range between 64 cents and 74 cents per share, up from a prior range between 57 cents per share and 72 cents per share.
"In December, we will be launching a comprehensive program innovation as we expand our purpose from weight loss alone to more broadly helping people lead healthier, happier lives," CEO Jim Chambers said in a statement. "The response to our groundbreaking partnership with Oprah Winfrey has been terrific. I am thrilled about the impact it will have on accelerating our transformation."
Last month, Weight Watchers stock soared by 90% after media proprietor Oprah Winfrey disclosed a 10% stake in the company.
Separately, TheStreet Ratings team rates WEIGHT WATCHERS INTL INC as a 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 a number of negative factors, 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, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: WTW
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