Weight Watchers International
The 10-second takeaway
For the quarter ended June 30 (Q2), Weight Watchers International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Gross margins expanded, operating margins shrank, net margins dropped.
Weight Watchers International booked revenue of $484.8 million. The seven analysts polled by S&P Capital IQ hoped for sales of $491.9 million on the same basis. GAAP reported sales were 0.2% lower than the prior-year quarter's $486.0 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 $1.36. The 10 earnings estimates compiled by S&P Capital IQ averaged $1.35 per share. GAAP EPS of $1.36 for Q2 were 16% higher than the prior-year quarter's $1.17 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 60.6%, 150 basis points better than the prior-year quarter. Operating margin was 31.7%, 30 basis points worse than the prior-year quarter. Net margin was 16.0%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $429.8 million. On the bottom line, the average EPS estimate is $1.09.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $4.10.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 199 members out of 232 rating the stock outperform, and 33 members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Weight Watchers International a green thumbs-up, and six give it a red thumbs-down.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.