Weight Watchers Shares Up 5% On Strong Results

(RTTNews) - Weight Watchers International Inc. (WTW) Tuesday reported an increase in profit for the fourth quarter as revenues grew 17 percent. Earnings and revenues for the quarter trumped Wall Street estimates, while the outlook for 2018 was well above current expectations. Shares of Weight Watchers gained nearly 5 percent in the extended trading session.

The New York-based company's fourth-quarter profit was $63.0 million or $0.91 per share, up from $13.3 million or $0.20 per share last year.

Analysts had expected the company to earn $0.31 per share, according figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 16.9% to $312.5 million from $267.4 million last year. Analysts had a consensus revenue estimate of $307.57 million for the quarter.

"We had a highly positive consumer response to the launch of our WW Freestyle program in December, which resulted in a strong finish to the year. More people are engaging with our brand and we ended 2017 with approximately 600,000 more members than a year ago, representing 23% growth," said Mindy Grossman, the Company's President and CEO.

Subscribers at the end of fourth quarter were up 22.6% versus the prior year period, driven by growth in all major geographic markets.

Looking forward to the full year 2018, the company expects earnings of $2.40 to $2.70 per share and revenues "approaching" $1.55 billion. Analysts currently estimates earnings of $1.81 per share and revenues of $1.44 billion.

WTW closed Tuesday's trading at $69.83, down $1.83 or 2.55%, on the NYSE. The stock, however, gained $3.27 or 4.68% in the after-hours trading session.