Subscribers are heading in the wrong direction, which is the key reason why Weight Watchers stock plunged after WW reported disappointing Q4 earningsin February. And the company’s second-quarter subscriber numberscontributed to the first leg down last summer.
Full Answer
Why is Weight Watchers stock so low?
[11/30/2020] Weight Watchers Digital Transformation The decline is driven primarily by lower Revenues at the company's Studio business (43% of total revenue mix in 2019), which was impacted as people stayed home and avoided public places due to Covid-19 lockdowns.
Will Weight Watchers stock go up?
According to consensus, the forecast for the full-year 2021 revenue and earnings are in line with the management guidance. The market sees revenue growth averaging 6.5% between 2022 and 2023, while EPS is expected to rebound high presumably driven by firming margins operating margins and upside to the digital pricing.
Is WW in financial trouble?
The company formerly known as Weight Watchers saw its sales and membership shrink in 2021 despite a forecast for growth from chief executive Mindy Grossman last spring. While WW blamed the flop on consumer habits during the pandemic, industry experts noted that Winfrey was remarkably quiet during the slide.
Is WW a good stock to buy now?
The financial health and growth prospects of WW, demonstrate its potential to outperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of F.
Is WW a buy or sell?
WW International has received a consensus rating of Hold. The company's average rating score is 2.20, and is based on 2 buy ratings, 2 hold ratings, and 1 sell rating.
Is Oprah still associated with Weight Watchers?
Entertainment mogul Winfrey made a large personal investment in WW in October 2015 and continues to hold stock. She is also the company's spokesperson through 2025.
What is wrong with Weight Watchers?
Weight Watchers focuses on counting points, not calories. However, counting calories is also important. If you consume calories significantly below the average intake of 2000 calories per day, you are at risk for undernourishment. For example, Weight Watchers frozen meals contain an average of 250 to 300 calories each.
Why did Weight Watchers fail?
Why Weight Watchers Fails Most People. In my opinion the biggest reason why Weight Watchers fails more often than not is that it doesn't teach people about real food. I could say this about any program that revolves around counting calories.
Is WW changing again in 2022?
WW (formerly Weight Watchers) has introduced a brand new plan for 2022, known to users as PersonalPoints. Point-tracking diet plans are personalized for each WW user based on their goals and favorite foods.
How much stock does Oprah have in Weight Watchers?
A WW director since October 2015, Winfrey now owns 4.8 million WW shares, while the foundation owns none.
How does WW make money in other words what is its business model?
Half of the company's revenue comes from meeting dues, with the rest tied to online subscriptions and sales of things like snack bars, books and points calculators. But even the packaged parts of Weight Watchers' business model are shrinking, losing out to health-conscious eaters opting more for fresh foods.
Is Weight Watchers publicly traded?
Ownership: Weight Watchers is a publicly owned company traded on the New York Stock Exchange.
The Weight Watchers Stock Rollercoaster
Trading in Weight Watchers stock over the past few years has been something close to incredible. WTW stock was at $80 in early 2012. It steadily collapsed over the next few years; by 2015, it had bottomed out below $4.
Why WW Is So Volatile
First, Weight Watchers has – and long has had – quite a bit of debt. It closed 2018 with about $1.5 billion of borrowings, net of its cash.
Be Careful With Weight Watchers Stock
The history of WW, and the nature of the model, highlight why it’s risky to call a bottom of WTW stock. Subscribers are heading in the wrong direction, which is the key reason why Weight Watchers stock plunged after WW reported disappointing Q4 earnings in February.
On the Sidelines on Weight Watchers Stock
Where WTW traded in 2018 really has little bearing on what it should, or will, trade at in 2019. Looking at the company right now, I think it does not have a shortage of risks. Its earnings are declining, its subscribers are falling, and its debt is worrisome.
The weight-loss and wellness solutions company is still reeling from a brutal fourth-quarter 2018 report. Here's what investors need to know
As a technology and consumer goods specialist for the Fool, Steve looks for responsible businesses that positively shape our lives. Then he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.
What happened
Shares of Weight Watchers International ( NASDAQ:WW) fell 50.5% in the first six months of 2019, according to data from S&P Global Market Intelligence, as the weight-loss services company has struggled to bolster its subscriber base despite an ongoing shift into the overall wellness category.
So what
Worse yet, Weight Watchers said that it expected revenue for the full year to decline by around $100 million to $1.4 billion, while 2019 earnings would plunge from $2.71 per share in 2018 to a range of $1.25 to $1.50 per share.
Now what
Alas, Weight Watchers was unable to maintain those gains, falling lower along with the broader market in the rest of May.