WW International Inc. (formerly known as Weight Watchers) reported disappointing third-quarter results, missing revenue forecasts and lowering expectations for the year. As a result, the stock plummeted over 10% in after-hours trading.
In the third quarter, WW International Inc. recorded earnings of $43.7 million, or 54 cents per share. This marks a significant improvement compared to the prior-year period, where the company suffered a loss of $206 million, or $2.93 per share. However, despite the positive bottom-line performance, revenue declined by 14% to $214.9 million.
Falling Short of Expectations
Analysts polled by FactSet had estimated that WW International Inc. would report earnings of 13 cents per share on sales of $222 million. Unfortunately, the company fell short of these projections.
Lowered Revenue Guidance
Moreover, WW International Inc. announced that its projected revenues for 2023 are expected to be at the lower end of its previous guidance range of $890 million to $910 million.
Strategic Decisions and Future Outlook
Chief Executive Heather Stark acknowledged that certain strategic decisions aiming to promote long-term commitment plans and phase out low-margin consumer-products business have put pressure on revenues in the quarter. However, she remains optimistic about the future, stating, “As demonstrated by our record gross margin, I am confident we are making the right decisions to return the business to profitable growth.”
Overall, while facing some obstacles, WW International Inc. strives to navigate these challenges by implementing strategic measures to ensure a profitable future.