Weight Watchers International's Latest EPS Top Last Year's by 34%
Feb 27th 2012 10:42AM
Updated Feb 27th 2012 10:44AM
Weight Watchers International (NYS: WTW) reported earnings on Feb. 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Weight Watchers International missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins increased across the board.
Weight Watchers International logged revenue of $401.3 million. The six analysts polled by S&P Capital IQ expected to see sales of $414.9 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $356.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The eight earnings estimates compiled by S&P Capital IQ predicted $0.86 per share. GAAP EPS of $0.86 for Q4 were 30% higher than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.2%, 330 basis points better than the prior-year quarter. Operating margin was 29.2%, 220 basis points better than the prior-year quarter. Net margin was 15.9%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $505.2 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $1.95 billion. The average EPS estimate is $4.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 177 members out of 217 rating the stock outperform, and 40 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 62 give Weight Watchers International a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Weight Watchers International is hold, with an average price target of $77.71.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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