Weight Watchers International Inc. (WTW) - Get Weight Watchers International, Inc. Report has been one of the best-performing stocks, but Tuesday, August 7, the stock sure didn't act that way after falling 14.2%.
Weight Watchers on Monday reported a 28% year-over-year increase in subscribers for the second quarter, bringing its subscriber base to an impressive 4.5 million. However, despite the year-over-year gains, the company lost 100,000 subscribers from the first quarter's 4.6 million.
Revenue in the quarter rose 20% year over year to $410 million while earnings jumped to $1.01 a share from 67 cents a year earlier.
The company also raised its full-year earnings guidance to between $3.10 and $3.25 a share from its previous view of between $3 and $3.20 a share.
This is the company's second upward earnings revision this year. Previously, it raised profit guidance from between $2.40 and $2.70 a share.
"Not only do we have the capability to transform the quality of our customers' lives, but now we also have the permission to be a bigger part of their lives," Weight Watchers President and CEO Mindy Grossman told TheStreet. "We want to help people more substantially, so we have evolved our brand to become a 365-day-a-year campaign."