Weight Watchers International
The 10-second takeaway
For the quarter ended March 30 (Q1), Weight Watchers International met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins increased, net margins dropped.
Weight Watchers International tallied revenue of $486.9 million. The six analysts polled by S&P Capital IQ predicted a top line of $484.3 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 $0.87. The nine earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.87 for Q1 were 18% higher than the prior-year quarter's $0.74 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 57.5%, 20 basis points better than the prior-year quarter. Operating margin was 21.2%, 80 basis points better than the prior-year quarter. Net margin was 10.0%, 80 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $459.7 million. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $1.73 billion. The average EPS estimate is $3.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 234 members out of 264 rating the stock outperform, and 30 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Weight Watchers International a green thumbs-up, and six 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 $49.83.
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