WW Stock Off as Results Are Hurt by Pandemic Closures

Shares of WW International, formerly Weight Watchers, fell after the diet and fitness company reported weaker-than-expected earnings.
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Shares of WW International  (WW) - Get Report, formerly Weight Watchers, fell Wednesday after the diet and fitness company reported weaker-than-expected second-quarter earnings. 

WW shares recently traded at $23.62, down 11%. The stock has fallen 38% year to date, compared with a 3% rise for the S&P 500.

WW reported profit of $14 million, or 20 cents a share, for the latest quarter, down from $54 million, or 78 cents a share, in the year-earlier quarter.

Adjusted earnings per share totaled 67 cents in the latest quarter, trailing the forecast of 70 cents in a survey of analysts by FactSet.

Revenue slid 9% to $334 million in the second quarter from $369 million a year earlier, as the coronavirus pandemic forced studios to close. The FactSet analyst consensus was $339 million of sales in the latest quarter.

"We ended the quarter with our highest-ever second-quarter subscriber base of 5 million, driven by a record level of digital subscribers, which were up 23% year-over-year,” Chief Executive Mindy Grossman said in a statement.

“These milestones combined with the strength in digital revenues and our high margins are all testament to the work of our teams and talent around the world. The impact of our accelerated digital transformation is evident in our second quarter results and will continue to be a key driver of our future growth and profitability.”

WW also named Amy O'Keefe chief financial officer. She was formerly CFO of Drive DeVilbiss Healthcare, a private-equity backed medical-equipment company in Port Washington, N.Y.

O’Keefe succeeds Nicholas Hotchkin, who was named to the new post of chief operating officer.

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