Weight Watchers’ Stock Has Fallen Considerably Because The Situation On The Ground Has Changed The decline in Weight Watchers’ stock is understandable, considering the impact that the outbreak and a broader economic slowdown are likely to have on consumer spending in the wellness and fitness industry.
Full Answer
Why did Weight Watchers stock drop so much?
[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 Weight Watchers 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 stock a good buy?
The consensus among 4 Wall Street analysts covering (NASDAQ: WW) stock is to Hold WW stock. Out of 4 analysts, 1 (25%) are recommending WW as a Strong Buy, 0 (0%) are recommending WW as a Buy, 2 (50%) are recommending WW as a Hold, 0 (0%) are recommending WW as a Sell, and 1 (25%) are recommending WW as a Strong Sell.
How much does Oprah make from Weight Watchers?
She had gifted 361,000 WW shares to her foundation, which sold them for $22.6 million, or $62.56 each on average. She had acquired 1.4 million WW shares through stock options, paying $9.8 million, $6.97 each. She continues to be WW's second-largest shareholder.
Is Weight Watchers making money?
The company earned $8.9 million, or 12¢ a share, in the second quarter of 2021 compared with $14 million, or 20¢ a share, made in the same quarter last year. Revenue also fell to $311 million, down 10% from the $334 million logged last year.
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.
Who is Weight Watchers biggest competitor?
WW (formally Weight Watchers) competitors include NutriSystem, Jenny Craig and Beachbody. WW (formally Weight Watchers) ranks 3rd in Gender Score on Comparably vs its competitors.
Is oprah still with WW?
' WW can use a boost from Oprah — who is also an investor and board member at the company — after sales and membership shrunk in 2021 amid the pandemic. Her marketing contract with WW is up in 2023, but she has agreed to serve as an adviser for the company through May 2025.
Who owns WW?
Today, Grossman, 63, is CEO of WW (formerly known as Weight Watchers), a job she got in 2017 — with major share owner and board member Oprah Winfrey's personal seal of approval — hired to turn struggling diet company Weight Watchers into a health-and-wellness brand.
Who is the current spokesperson for Weight Watchers?
James Corden opened up about his health journey with Weight Watchers (WW), one month after announcing his partnership with the brand.
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.
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Trefis is an interactive financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. Whereas most finance sites simply give you the facts about where a stock has been and what a company has done in the past, Trefis focuses entirely on the future.
How much did WW International memberships grow in 2020?
Digital Revenues grew by about 23% in Q3 and were up by 18% over the nine months ended September 2020. In fact, total memberships rose to 4.66 million, an increase of more than 5% year-over-year led by growth in the digital space.
How many subscribers does WW International have?
WW International, with its Studio and Digital business combined, had under 5 million subscribers as of the last quarter. Another digital health app, Lifesum, which has about 45 million users globally, ...
Is Weight Watchers stock undervalued?
To sum things up, although Weight Watchers’ revenues are likely to be lower in FY’20, Weight Watchers’ stock currently seems undervalued due to its upbeat digital business and a strong retention ratio.
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.
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.
What happened
Shares of WW (NASDAQ: WTW), the company formerly known as Weight Watchers, were losing the wrong kind of weight today as the wellness specialist's stock tumbled on an analyst warning. As of 12:24 p.m. EDT, shares were down 11.6%.
So what
JPMorgan Chase analyst Christina Brathwaite maintained her underweight rating on the company, but cut her price target to $12 from $14, calling for the stock to fall by another third from where it is now.
Now what
WW shares are now down more than 80% from their peak last summer as the stock's earlier blockbuster gains, which started with media mogul Oprah Winfrey taking a stake in the company, have rapidly unraveled. The company has missed the mark in its last three earnings reports as its subscriber base and profits have begun to erode.