Weight Watchers International
The 10-second takeaway
For the quarter ended Sep. 29 (Q3), Weight Watchers International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share increased.
Gross margins expanded, operating margins shrank, net margins shrank.
Weight Watchers International notched revenue of $430.6 million. The five analysts polled by S&P Capital IQ expected revenue of $417.4 million on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $428.4 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 $1.20. The nine earnings estimates compiled by S&P Capital IQ averaged $1.06 per share. GAAP EPS of $1.20 for Q3 were 10% higher than the prior-year quarter's $1.09 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 59.4%, 80 basis points better than the prior-year quarter. Operating margin was 30.6%, 170 basis points worse than the prior-year quarter. Net margin was 15.7%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $397.9 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $1.80 billion. The average EPS estimate is $4.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 201 members out of 232 rating the stock outperform, and 31 members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Weight Watchers International a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Weight Watchers International is hold, with an average price target of $59.57.
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