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Bloomberg WW International Inc., the company formerly known as Weight Watchers, raised its outlook for the year but the after-hours stock movement indicated that the hike left too much chance of a disappointment for Wall Street’s taste.
WW WW, +3.79% shares fell 15% after hours, following a 3.8% rise in the regular session to close at $37.51. In comparison, the S&P 500 index SPX, -0.12% finished down 0.1% Tuesday. The company formally changed its name at the end of September.
The Weight Watchers parent said it now expects full-year earnings of $1.63 to $1.75 a share, up from a previous forecast of $1.55 to $1.70 a share, while reiterating revenue of “at least $1.4 billion.” Analysts surveyed by FactSet forecast earnings of $1.69 a share on revenue $1.42 billion.
Back in August, shares rallied more than 15% after the company hiked its outlook for the year.
The company reported third-quarter net income of $47.1 million, or 68 cents a share, compared with $70.1 million, or $1 a share, in the year-ago period. Revenue declined to $348.6 million from $365.8 million in the year-ago quarter.
Analysts had forecast earnings of 66 cents on revenue of $352.7 million.
End-of-period subscribers increased 6% from a year ago to 4.4 million, while Wall Street had forecast 4.3 million.
