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Why WW International Was Soaring 17% Higher Today

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

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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.

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WW International, Inc. Stock Quote
WW International, Inc.
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