Please ensure Javascript is enabled for purposes of website accessibility

Why WW International Was Soaring 17% Higher Today

By Rich Duprey - May 6, 2021 at 12:24PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Wall Street thinks the weight-loss specialist's business has slimmed down as much as it's going to.

What happened

Shares of WW International (WW -1.16%) were soaring 17% higher in midday trading Thursday after the weight-loss leader reported first-quarter earnings that beat management's expectations.

So what

While WW reported a GAAP loss of $0.26 per share, adjusted for restructuring costs, the loss came to $0.20 per share, much better than the $0.24 per share Wall Street expected.

Woman checking her weight on a scale

Image source: Getty Images.

WW said the number of digital subscribers jumped 16% to a record 4.2 million, leading analysts to raise their price targets. Or, as Craig-Hallum analyst Alex Fuhrman said in increasing his target to $40 from $32 per share, "the worst is over, and it wasn't that bad." He maintained a buy rating on the stock.

Now what

Fuhrman wasn't alone in raising his outlook. DA Davidson analyst Linda Weiser raised her price target to $39 per share while also expecting fiscal-year 2021 earnings to now come in at $2.26 per share from $1.92 per share as management nudged its guidance for revenue and profits higher.

WW closed below $28 a share on Wednesday before reporting earnings but was trading at just under $32 a stub by noon, indicating analysts believed there was still 25% more upside to the stock.

Rich Duprey 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

WW International, Inc. Stock Quote
WW International, Inc.
$6.79 (-1.16%) $0.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.