Weight Watchers International
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Weight Watchers International missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins increased across the board.
Weight Watchers International logged revenue of $401.3 million. The six analysts polled by S&P Capital IQ expected to see sales of $414.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $356.7 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 $0.86. The eight earnings estimates compiled by S&P Capital IQ predicted $0.86 per share. GAAP EPS of $0.86 for Q4 were 30% higher than the prior-year quarter's $0.66 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 56.2%, 330 basis points better than the prior-year quarter. Operating margin was 29.2%, 220 basis points better than the prior-year quarter. Net margin was 15.9%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $505.2 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $4.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 177 members out of 217 rating the stock outperform, and 40 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Weight Watchers International a green thumbs-up, and 12 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 $77.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.