Weight Watchers International
The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Weight Watchers International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share grew.
Gross margins expanded, operating margins contracted, net margins shrank.
Weight Watchers International notched revenue of $407.9 million. The six analysts polled by S&P Capital IQ predicted net sales of $397.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.96. The nine earnings estimates compiled by S&P Capital IQ averaged $0.87 per share. GAAP EPS of $0.96 for Q4 were 13% higher than the prior-year quarter's $0.85 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 56.5%, 30 basis points better than the prior-year quarter. Operating margin was 26.5%, 260 basis points worse than the prior-year quarter. Net margin was 13.2%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $517.6 million. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $1.89 billion. The average EPS estimate is $4.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 213 members out of 243 rating the stock outperform, and 30 members rating it underperform. Among 72 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 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 $58.33.
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