Weight Watchers International, Inc. (NYSE: WTW) rose Friday after the company reported stronger-than-expected results for its first quarter. The company also raised its FY18 earnings outlook from $2.40-$2.70 to $3-$3.20.
Revenues in Q1 2018 were $408.2 million. On a constant currency basis, Q1 2018 revenues increased 19.5% versus the prior year period. Operating Income in Q1 2018 was $62.1 million.
On a constant-currency basis, operating income increased 95.6% versus the prior year period. This increase in operating income was primarily driven by operating leverage on higher revenues in the quarter versus the prior year period.
Net income in Q1 2018 was $39.1 million compared to $10.7 million in the prior year period.
Earnings per fully diluted share (EPS) in Q1 2018 was $0.56 compared to $0.16 in the prior year period.
CEO Mindy Grossman said,"Driven by the enthusiastic, global response to our new WW Freestyle™ program, we ended the first quarter with 4.6 million subscribers – the highest level in the history of Weight Watchers and an increase of one million compared to a year ago. Member engagement has been incredible with members staying longer than ever before. Average retention is now well over nine months.
"The world needs a leader in wellness, and a brand that can bring wellness to all. We aim to be that leader. By delivering a technology experience with human impact, we have the opportunity to expand our purpose and reach allowing us to generate sustainable growth."
Shares in Weight Watchers gained 50 cents to $70.20.
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