Weight Watchers International

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Re: Weight Watchers International

Berichtdoor vogelspotter » 06 Aug 2019 23:13

Weight Watchers CEO: We are making a comeback

Brian Sozzi
Editor-at-Large

Yahoo FinanceAugust 06, 2019


Another comeback quarter for Weight Watchers (WW) is in the books.

The health and wellness brand reported second quarter earnings of 78 cents a share on Tuesday after the close, dusting Wall Street estimates for 65 cents a share. Total revenue came in at $369 million versus analyst projections for $377 million.

The company’s closely watched subscriber count clocked in at 4.6 million, up about 1.5% from a year ago, powered by new digital additions. The figure was generally in line with most numbers on Wall Street.

Weight Watchers CEO Mindy Grossman tells Yahoo Finance the company continued to see improvements in client retention and customer acquisition in the second quarter. Grossman adds that momentum in the business has been sustained into the third quarter.

Apparently the strength is enough for Weight Watchers to strike an upbeat note ahead of a new diet plan and fresh marketing plan that will be unveiled in the key early 2020 dieting season. Weight Watchers sees full year sales of $1.4 billion and earnings of $1.55 to $1.70 a share. Previously, the company had guided to $1.4 billion in sales and earnings of $1.35 to $1.55 a share.

Shares of the company popped more than 12% in after-hours trading Tuesday.

It was just this past February when Weight Watchers materially slashed its full year profit outlook owing to a disappointing consumer response to its new brand positioning. Prior to Tuesday’s earnings release, Weight Watchers shares had fallen about 45% year-to-date.

Grossman says her team is focused on “executing” this year. That’s one way to get the stock moving higher again.
In port:AB Inbev,Arcelor,ASIT,Avantium, Deceun,Deutsche Bank,econocom,Euronav, Greenyard,OneSpan ,Petrobras(PBR-A),Weight Watchers, X-Fab,Wessanen,UCB.
Verk.TomTom,Nyrstar.



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Re: Weight Watchers International

Berichtdoor vogelspotter » 08 Aug 2019 07:40

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Weight Watchers upgraded at Bank of America as 2020 innovation sparks optimism


Published: Aug 7, 2019 1:25 p.m. ET


Weight Watchers stock soared 40% on Wednesday, heading to biggest one-day percentage jump since October 2015

WW
Weight Watchers is promising a new program for 2020, which has got analysts bullish


By

Tonya
Garcia

Reporter

 
Weight Watchers International Inc. was upgraded from underperform to buy at Bank of America Merrill Lynch on subscriber numbers stabilization in the second quarter and a user-driven 2020 program that leaves analysts bullish.

Bank of America raised its price target to $27 from $25.

WW WW, +42.65% announced second-quarter earnings late Tuesday, which included an increase in the full-year earnings outlook to between $1.55 and $1.70 per share. The FactSet consensus is for $1.52 per share.

WW ended the quarter with 4.6 million subscribers, up from 4.5 million last year.

Read: Blue Apron to end partnership with Walmart’s Jet.com but continue with Weight Watchers

Shares soared more than 40% in Wednesday trading, putting WW on the path to the biggest one-day percentage gain since October 2015.


Bank of America analysts led by Olivia Tong still see risks in WW, including competition from other apps and programs.

“However, after much volatility and several misfires, we think WW is getting back on track, re-engaging their consumers and better communicating the significant changes made in 2018 that alienated some,” Bank of America wrote. “A new program for the post-holiday recruitment drive should drive renewed interest amongst previous members and attract new (never) members as well in our view.”

WW Chief Executive Mindy Grossman would only say that the new innovation will offer a fresh way to follow the program, and is based on lessons from the WW Freestyle program along with new scientific research.

“We believe our 2020 innovation will appeal not only to our current members who love the flexibility of WW Freestyle but also to potential first time and returning members who are looking for a more personalized program that provides the structure and support for sustainable results,” she said, according to a FactSet transcript.

See: Shake Shack partners with GrubHub for nationwide delivery, warns of ‘volatility’

“In addition to conducting clinical trials to verify efficacy, the innovation has undergone extensive consumer testing to ensure we’re delivering a program that fits the needs of even more people.”

UBS analysts are keeping a wary eye on WW, as the subscriber growth was still a deceleration on a two-year stack and was likely helped by some discounting.

Still, WW says the third quarter is off to a good start and fall advertising should give the business a bump, said UBS.

“However, the true test will be the reception of its new program at the end of the year,” analysts said. “We think the market will reward WW for its progress in Q2, but it’s unlikely to give it full credit for a successful program launch until it provides evidence that its subscriber growth is sustainable,” the note said.

Also: Pizza Hut will close hundreds of locations to focus on carry out and delivery

UBS rates WW neutral with a $26 price target, up from $23.

“[W]e agree that the new diet program launch should drive recruitment and earnings growth next year,” wrote JPMorgan analysts. “That said, we continue to believe that investors should remain on the sidelines until getting more clarity around the key differences in WW’s new program, given the increasing intensity of the competitive environment.”

JPMorgan rates WW stock neutral with a $27 price target, up from $22.

WW stock has lost 62.5% for the past year while the S&P 500 index SPX, +0.08% is down 0.2% for the period.
In port:AB Inbev,Arcelor,ASIT,Avantium, Deceun,Deutsche Bank,econocom,Euronav, Greenyard,OneSpan ,Petrobras(PBR-A),Weight Watchers, X-Fab,Wessanen,UCB.
Verk.TomTom,Nyrstar.



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