Weight Watchers International, Inc. (WTW) is buffing up.
The weight loss company beat Wall Street estimates in its third-quarter earnings, released Monday, Nov. 6, posting earnings of 65 cents per share and net revenue of $323.7 million. That's compared to analyst predictions of 51 cents in EPS and $315.8 million in revenue.
Weight Watchers has been on a vigorous rebound since late 2016. In the five years leading up to that point, shares fell 95% as the company saw slumping membership numbers and falling revenue. At one point, it piqued the interest of hedge fund buyers.
To restructure, the company stopped paying dividends, laid off employees and cut hundreds of millions of dollars in other costs. Finally, this year, turnaround efforts became visible.
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Its CEO, Mindy Grossman, joined the company four months ago.
"This is our eighth sequential period of positive growth and it continues," Grossman told TheStreet after the earnings release. "If you look at the quality of earnings, particularly in this quarter, it's growth in every area along with leverage and gross margin growth, which means we're growing the business very intelligently without having to have an untoward approach to promotion."
Weight Watchers CEO Mindy Grossman.
In the third quarter, membership increased by more than 18% since this period last year. Net income totaled $44.7 million—compared to $34.7 million last year. As part of the earnings release Monday, Weight Watchers also raised its full-year guidance on earnings to between $1.77 and $1.83 per share.
Weight Watchers shares are up 11% Monday evening after the bell, to $49.25.
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