Weight Watchers stock plunges 34% as earnings show mixed results, weak outlook

Weight Watchers International Inc. WTW, +0.61% late Tuesday reported mixed fourth-quarter results and weak guidance, saying it had a “soft start” to 2019, and shares plunged more than 30%. The company said it earned $44 million, or 63 cents a share, in the quarter, compared with $63 million, or 91 cents a share, in the year-ago period. Revenue rose 6% to $330 million. Analysts polled by FactSet had expected earnings of 60 cents a share on sales of $347 million. For the year, Weight Watchers said it expects revenue of about $1.4 billion and earnings between $1.25 a share and $1.50 a share. The analysts surveyed by FactSet expect 2019 EPS around $3.38 on sales of $1.7 billion. The stock ended the trading day up 0.6%, but shares were halted after the close. When trading resumed at 4:35 p.m. Eastern time, the stock immediately plunged more than 30% in after-hours trading.

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