NEW YORK (TheStreet) -- Shares of Weight Watchers International (WTW) - Get Report are sinking, sharply down 31.83% to $11.97 on heavy volume in early market trading Friday, after the weight loss company issued 2015 earnings guidance below estimates as it loses members to free apps and other fitness tracking devices.
For fiscal 2015, Weight Watchers expects earnings in a range of between 40 cents to 70 cents per share, lower compared to analysts' full-year earnings estimate of $1.43 per share. The company said it plans to cut $100 million in costs this year.
The company added that it intends to finalize plans to resize during the first quarter of fiscal 2015, and that the costs associated with this plan are not included in its guidance.
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For the fourth quarter, Weight Watchers reported earnings of 7 cents per share, in-line with analysts' estimates. Revenue fell 10.4% from a year ago to $327.8 million, and missed the consensus estimate of $332.7 million.
The company said the drop in revenue was due to lower sales amid lower membership additions, especially in North America.
Weight Watchers reported that active subscribers declined 15.3% to 2.51 million in the quarter. Meeting subscribers fell 13.3%, and online subscribers fell 16.7%.
About 1.21 million shares of the weight loss company have exchanged hands as of 10:06 a.m. ET today, compared to its average trading volume of about 865,754 shares a day.
New York City-based Weight Watchers International is a global-branded consumer company and a provider of weight management services, operating globally through a network of company-owned and franchise operations.
Separately, TheStreet Ratings team rates WEIGHT WATCHERS INTL INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WEIGHT WATCHERS INTL INC (WTW) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."
- You can view the full analysis from the report here: WTW Ratings Report