Shares of WW (WTW), formerly known as Weight Watchers, are down almost 30% in after-hours trading to $20.78 after the company reported Q4 earnings and guidance for FY19. The guidance, for FY19 EPS $1.25-$1.50 and FY19 revenue of approximately $1.4B, was well below the analyst consensus of $3.43 and $1.66B, respectively. WW CEO Mindy Grossman said, “While we are disappointed with our start to 2019, 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.” WW CFO Nick Hotchkin added, “Due to the soft start to the key Winter Season, we expect member recruitment for 2019 to be below 2018 levels, resulting in lower revenue and earnings for the year. We are focused on driving member recruitment and exercising strict cost discipline, while continuing to invest in the areas that will drive future growth.”
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