Personal wellness company WeightWatchers (NASDAQ:WW) will be reporting earnings tomorrow afternoon. Here’s what to look for.
WeightWatchers missed analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $192.9 million, down 10.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. It reported 3.67 million members, down 8.8% year on year.
Is WeightWatchers a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting WeightWatchers’s revenue to decline 14.7% year on year to $175.7 million, a further deceleration from the 7.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WeightWatchers has missed Wall Street’s revenue estimates six times over the last two years.
Looking at WeightWatchers’s peers in the specialized consumer services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Pool’s revenues decreased 1.6% year on year, beating analysts’ expectations by 2.4%, and LKQ reported a revenue decline of 4.1%, falling short of estimates by 2%. Pool’s stock price was unchanged after the resultswhile LKQ was up 2.8%.
Read our full analysis of Pool’s results here and LKQ’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the specialized consumer services stocks have shown solid performance, the group has generally underperformed, with share prices down 3.4% on average over the last month. WeightWatchers is down 43.1% during the same time and is heading into earnings with an average analyst price target of $1.03 (compared to the current share price of $0.66).
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