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Factors Setting the Tone for WW International (WW) Q4 Earnings

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WW International, Inc. WW is scheduled to report fourth-quarter 2019 results on Feb 25. In the last reported quarter, the company delivered a positive earnings surprise of 1.5%. Further, the company has a trailing fourth-quarter positive earnings surprise of 16.2%, on average.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents, suggesting a decline of 41.3% from the year-ago quarter. Over the past 30 days, the company’s earnings estimates have been stable. For quarterly revenues, the consensus mark is pegged at $331.4 million, indicating an improvement of 0.3% from the prior-year reported figure.

Factors at Play

WW International fourth-quarter performance is likely to have benefited from robust marketing execution and subscriber growth. The company has also been gaining from loyalty and rewards program, WellnessWins and increase in digital subscription. Moreover, robust performance of Continental Europe is likely to get reflected in fourth-quarter results.

However, increase in marketing expenses and higher interest expenses are likely to have affected the company’s fourth-quarter performance.

WW International, Inc. Price and EPS Surprise

What the Zacks Model Unveils

Our proven model predicts an earnings beat for WW International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

WW International has an Earnings ESP of +15.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to come up with an earnings beat in the to-be-reported quarter:

Vail Resorts, Inc. MTN has a Zacks Rank #3 and an Earnings ESP of +0.11%.

G-III Apparel Group, Ltd. GIII has a Zacks Rank #1 and an Earnings ESP of +5.62%.

Casa Systems, Inc. CASA has a Zacks Rank #2 and an Earnings ESP of +83.34%.

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