Diet Seller WW Drops on Sales Miss, Slowing Signups
Diet Seller WW Drops After Sales Miss, Subscriber Contraction
(Bloomberg) -- WW International Inc. shares tumbled after reporting third-quarter revenue that missed analyst estimates and a smaller subscriber base than a quarter earlier.
The company formerly known as Weight Watchers had revenue of $348.6 million, which trailed the average analyst estimate at $352.5 million, according to data compiled by Bloomberg. Subscribers totaled 4.4 million at the end of the quarter, an increase of 6% from the same period a year ago, but down from 4.6 million in the second quarter. The stock fell as much as 17% in extended trading.
Shares of the New York-based company have soared since its earnings report in August showed subscribers didn’t decline in the second quarter, bucking a seasonal trend. The stock had gained 79% since August 6, based on Tuesday’s closing price.
WW also raised its annual earnings per share forecast to $1.63 to $1.75 from $1.55 to $1.70. The midpoint of that range exceeded the average analyst estimate of $1.66.
To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.net
To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jeremy R. Cooke
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