NEW YORK (TheStreet) -- Weight Watchers International (WTW) - Get Weight Watchers International, Inc. Report stock is up by 1.79% to $26.75 in pre-market trading on Monday, after the New York City-based health management company launched its new dieting program.
The new program, called "Beyond the Scale," includes a smartphone application and a personalized fitness plan for members, the company announced on Monday. It will focus on encouraging members to eat healthier foods rather than only counting calories, Weight Watchers said.
"We're meeting members where they are today, inspiring and guiding healthier choices not only to lose weight but realize benefits that go beyond just the number on the scale," CEO Jim Chambers said in a statement. "Beyond the Scale delivers more ways than ever for you to personalize your program, define your success, and guide you on your road to healthier living."
The revamped plan comes after media mogul Oprah Winfrey invested in the company in October, which sent Weight Watchers shares soaring.
Weight Watchers said Winfrey has been using the new weight loss plan since August.
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 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, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WEIGHT WATCHERS INTL INC's earnings per share declined by 43.3% in the most recent quarter compared to 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 $1.74 versus $3.63 in the prior year. For the next year, the market is expecting a contraction of 57.5% in earnings ($0.74 versus $1.74).
- The share price of WEIGHT WATCHERS INTL INC has not done very well: it is down 12.68% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- Net operating cash flow has significantly decreased to $26.57 million or 64.93% when compared to the same quarter last year. Despite a decrease in cash flow of 64.93%, WEIGHT WATCHERS INTL INC is still significantly exceeding the industry average of -151.46%.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Diversified Consumer Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 42.5% when compared to the same quarter one year ago, falling from $37.89 million to $21.79 million.
- The revenue fell significantly faster than the industry average of 14.8%. Since the same quarter one year prior, revenues fell by 20.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: WTW
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.