Personal wellness company WeightWatchers (NASDAQ: WW) will be reporting earnings this Thursday before market open. Here’s what investors should know.
WeightWatchers beat analysts’ revenue expectations last quarter, reporting revenues of $162.8 million, down 11.7% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Is WeightWatchers a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting WeightWatchers’s revenue to decline 15% year on year, a further deceleration from the 9.7% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. WeightWatchers has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at WeightWatchers’s peers in the consumer discretionary - specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Matthews’s revenues decreased 39.5% year on year, beating analysts’ expectations by 2%, and Mister Car Wash reported revenues up 6.2%, topping estimates by 1%. Matthews’s stock price was unchanged after the resultsand Mister Car Wash’s price followed a similar reaction.
Read our full analysis of Matthews’s results here and Mister Car Wash’s results here.
There has been positive sentiment among investors in the consumer discretionary - specialized consumer services segment, with share prices up 6% on average over the last month. during the same time and is heading into earnings with an average analyst price target of $37 (compared to the current share price of $11.88).
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