Weight Watchers International
The 10-second takeaway
For the quarter ended March 31 (Q1), Weight Watchers International met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins contracted, net margins contracted.
Weight Watchers International booked revenue of $503.5 million. The seven analysts polled by S&P Capital IQ anticipated net sales of $505.8 million on the same basis. GAAP reported sales were 0.0% higher than the prior-year quarter's $503.4 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 $0.75. The seven earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS of $0.74 for Q1 were 26% lower than the prior-year quarter's $1.00 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 57.3%, 110 basis points better than the prior-year quarter. Operating margin was 20.4%, 660 basis points worse than the prior-year quarter. Net margin was 10.8%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $501.6 million. On the bottom line, the average EPS estimate is $1.39.
Next year's average estimate for revenue is $1.90 billion. The average EPS estimate is $4.70.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 181 members out of 217 rating the stock outperform, and 36 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 56 give Weight Watchers International a green thumbs-up, and seven 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 $83.22.
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