Yahoo Finance Why Weight Watchers International Shares Soared Today
What happened
Shares of Weight Watchers International (NYSE: WTW) are soaring today, up by 16% as of 11:00 a.m. EST, after the company reported third-quarter earnings. Results came in better than expected and the weight-loss specialist also raised its full-year guidance.
So what
Revenue in the third quarter was $324 million, topping the Street's consensus estimate of $316 million in sales. That translated into net income of $44.7 million, or $0.65 per share, also ahead of the $0.51-per-share profit that analysts were expecting. The company ended the quarter with 3.4 million subscribers, and total paid weeks were up 20%.
Operating income jumped 34% on a constant currency basis to $91 million.
Image source: Getty Images.
Now what
"Weight Watchers delivered strong performance across all major geographies in the third quarter, which resulted in high-quality earnings results," CEO Mindy Grossman said in a statement. "We are excited about the upcoming winter season and the launch of our new program, which has received highly positive and enthusiastic feedback in consumer trials. We have a tremendous opportunity to continue to evolve Weight Watchers into a global, healthy living brand."
Weight Watchers is boosting its bottom-line forecast for 2017, and now expects earnings per share of $1.77 to $1.83, up from its prior outlook of $1.57 to $1.67 per share.
More From The Motley Fool
6 Years Later, 6 Charts That Show How Far Apple, Inc. Has Come Since Steve Jobs' Passing
Why You're Smart to Buy Shopify Inc. (US) -- Despite Citron's Report
Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
