Shares of Weight Watchers International (NASDAQ: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.
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.
"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.