WW International Sinks as Profit Forecast Misses Lowest Estimate
(Bloomberg) -- WW International Inc., the diet company formerly known as Weight Watchers, plunged Tuesday after providing a full-year profit forecast that fell short of the lowest analyst estimate as online subscriber growth underwhelmed.
Shares tumbled as much as 22% in extended trading. If the move holds through Wednesday’s session, it would be the worst one-day drop following earnings since the fourth quarter of 2018.
WW International said per-share earnings will be in the range of $1.10 to $1.25 for 2021, which incorporates the impact of paying off debt early and estimated restructuring charges for the year. That missed the average estimate of $2.08 a share, which ranged from $1.46 to $2.33, data compiled by Bloomberg show.
The company also said full-year revenue will “approach” $1.3 billion, which trailed the consensus estimate of $1.39 billion. WW International said it was resuming its practice of providing a financial outlook, after declining to give formal guidance with its first-quarter results in May.
The disappointing forecasts come as member growth missed the company’s expectations. Subscribers were down 1.9% in the second quarter versus the year-ago period.
“Subscriber trends in Q2 followed a more typical seasonal pattern than we expected, and our guidance reflects this trend,” WW International Chief Financial Officer Amy O’Keefe said.
WW International shares have gained 32% this year through Tuesday’s close.
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