Weight Watchers International Inc (NYSE:WTW)
Weight Watchers announced their earnings on Thursday August 3, 2017 after the market closed for trading at 4 p.m. EDT. Earnings and guidance was stellar. Earnings for the quarter were $45.2 million dollars which equates to $.67 cents per share.
This Compares with earnings of $30.5 million dollars or $0.46 per share in the same period last year. These numbers blew out the expected earnings of $0.51 per share. For the rest of the fiscal 2017 year earnings period, the company upped the guidance from $1.40 – $1.50 to $1.57 – $1.67 per share.
The short float in the company’s shares stands at 29.6%. This is a huge amount, roughly one-third of the shares are sold short which usually can incite a buying frenzy and create what is called in the trading world a “short squeeze”.
Company Comments
Mindy Grossman, the CEO and President had this to say about the earnings,
“Weight Watchers’ strong performance is due to the broad-based improvements the Company has implemented, including updating the program, enhancing the digital offerings, and refreshing the meetings experience, with a proven, science-based program, strong digital capabilities, and the support and community offered by thousands of coaches and millions of members worldwide, Weight Watchers offers a strong value-proposition that positions the Company for continued growth. By leveraging technology, innovation, and the power of community, Weight Watchers will be able to realize the full growth potential of the business and make a major impact on our members’ lives.”
Nick Hotchkin, the Company’s CFO added,
“Weight Watchers delivered another quarter of continued momentum with revenue growth in constant currency in every geographic segment, driven by compelling marketing programs in our major markets, we expect strong growth in revenues and operating income in the second half of this year.”
WTW Technicals
The above price chart shows the daily action beginning in February of this year. You can see where price gapped up slightly after an earnings report at the time. Shares stayed in a beautiful 45 degree angle up- trendline which can be maintained for a long time.
However, after the earnings that were announced today, shares will likely create a slightly stronger uptrend line because the numbers were actually very good.
The above price chart shows the intraday trading action on Thursday August 3rd 2017. On the left you will see the regular trading action from 9:30 until 4 p.m. eastern Daylight Time. And on the right shows the aftermarket action.
It is clear to see how prices surged up the earnings were announced and then settled back a bit as the news was fully digested.
Company Profile
Weight Watchers International, Inc. provides weight management services worldwide. The company operates in four segments: North America, United Kingdom, Continental Europe, and Other. It offers a range of products and services comprising nutritional, activity, behavioral, and lifestyle tools and approaches.
The company also engages in the meetings business, which presents weight management programs, as well as allows members to support each other by sharing their experiences with other people experiencing similar weight management challenges.
In addition, it offers various digital subscription products, including Weight Watchers OnlinePlus and a weight management companion for Weight Watchers meeting members to digitally manage the day-to-day aspects of their weight management plan, as well as provides interactive and personalized resources that allow users to follow weight management plan. Further, the company provides Personal Coaching, an online subscription product that offers one-on-one telephonic, e-mail, and text support and personalized planning from a Weight Watchers-certified coach, as well as offers access to other online tools.
Additionally it offers various products, including bars, snacks, cookbooks, food, and restaurant guides with SmartPoints values, Weight Watchers magazines, SmartPoints calculators, and fitness kits, as well as third-party products, such as activity-tracking monitors.
The company also licenses the Weight Watchers brand and other intellectual property in frozen foods, baked goods, and other consumer products, as well as endorses selected branded consumer products; and engages in publishing magazines, as well issues other publications, such as cookbooks, and food and restaurant guides with SmartPoints values.
It offers products through its meeting and franchisee business, as well as online. Weight Watchers International, Inc. was founded in 1961 and is headquartered in New York, New York