Weight Watchers International
The 10-second takeaway
For the quarter ended June 30 (Q2), Weight Watchers International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Gross margins expanded, operating margins shrank, net margins dropped.
Weight Watchers International booked revenue of $484.8 million. The seven analysts polled by S&P Capital IQ hoped for sales of $491.9 million on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $486.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.36. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.35 per share. GAAP EPS of $1.36 for Q2 were 16% higher than the prior-year quarter's $1.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.6%, 150 basis points better than the prior-year quarter. Operating margin was 31.7%, 30 basis points worse than the prior-year quarter. Net margin was 16.0%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $429.8 million. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $4.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 199 members out of 232 rating the stock outperform, and 33 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Weight Watchers International a green thumbs-up, and six give it a red thumbs-down.
- Add Weight Watchers International to My Watchlist.