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Weight Watchers Climbs 8% on Earnings Beat, Subscription Gains

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Weight Watchers International, Inc. (WTW - Free Report) just released its fourth quarter financial results, posting earnings of $0.19 per share and revenues of $267 million. Currently, Weight Watchers is a Zacks Rank #3 (HOLD) and is up 8.76% to $15.65 per share in after-hours trading on Tuesday.

Beat earnings estimates. The company posted earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.18 per share, which excludes $0.01 from non-recurring items.

Missed revenue estimates. The company saw revenue figures of $267 million, missing our consensus estimate of $271 million.

The New York City-based weight control program posted fourth quarter net income of $13.3 million, compared to a loss of $11.3 million in 2015. Fourth quarter 2016 service revenues were $221.2 million, up 5.7% year-over-year.

Fourth quarter 2016 subscriber numbers were up 9.7% year-over year, driven, in part, by big North American growth. Total paid weeks were up 10.1% from fourth quarter 2015. But declines in international markets offset bigger potential gains.  

Weight Watchers saw revenue figures of  $1.16 billion for fiscal 2016, up 1.4% from 2015.

"We delivered positive member recruitment growth in every quarter of 2016, ending the year with 10% more subscribers than the prior year," Nick Hotchkin, CFO and one of three interim CEOs, said in a press release.

"So far in 2017 our global marketing campaigns are driving strong member recruitment and interest in our Beyond the Scale program. With the year off to a good start, we are confident we will deliver revenue growth and higher profitability throughout the year."

Here’s a graph that looks at Weight Watchers’ Price, Consensus and EPS Surprise.

Weight Watchers International, Inc. is the largest provider of weight control programs in the world. The core of their business is weekly meetings, in which they present their scientifically designed program, incorporating group support and education about healthy eating patterns, behavior modification and physical activity.

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