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Weight Watchers boosts guidance after lower-than-expected 1Q loss

The food and nutrition system swung to a loss of $0.16 per share but beat Street estimates
Oprah Winfrey
The Oprah-backed company expects full year EPS between $1.35 and $1.55, with the entire range topping analyst expectations of $1.34

Weight Watchers International Inc (NASDAQ:WW) is looking healthy after posting first-quarter results late Thursday that were strong enough to lift its full-year guidance.

The food and nutrition system swung to a loss of $0.16 per share after posting $0.56 per share in the year ago quarter, but beat Street estimates of a $0.26 per share loss.

Investors were excited about a different kind of points, boosting shares more than 13% to $23. 

READ: Weight Watchers and Avon Products both go for a modern makeover

Looking forward, the company expects Oprah's 10% stake to get a bit more valuable. It projects full year EPS between $1.35 and $1.55, with the entire range topping analyst expectations of $1.34.

“Trends improved sequentially throughout the quarter, resulting in 4.6 million subscribers at quarter end, up 1% year-over-year,” President and CEO Mindy Grossman said. “We are confident that our strategy to focus on providing holistic wellness solutions leveraging our best-in-class weight management program is the right path to support long-term sustainable growth.”

Revenue dipped 11% to $363.2 million, topping expectations of $357.7 million. End of period subscribers were up nearly 1% driven largely by strong digital growth.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

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