Weight Watchers Q4 Earnings Disappoint; Wide Forecast Could Miss (WTW)

Weight management specialist Weight Watchers International, Inc. (WTW) late Tuesday posted better-than-expected fourth quarter earnings but offered a somewhat tepid 2012 forecast.

The New York-based company reported fourth quarter net income of $63.7 million, or 86 cents per share, compared with $48.9 million, or 66 cents per share, in the year-ago period.

Revenue rose 12.5% from last year to $401.3 million.

On average, Wall Street analysts expected a slightly higher profit of 87 cents per share, on larger revenue of $412.1 million.

Looking ahead, the company forecast full-year 2012 earnings to range from $4.20 to $4.60 per share, while analysts are looking for $4.58 per share for the year.

Weight Watchers shares fell $1.84, or -2.3%, in premarket trading Wednesday.

The Bottom Line
Shares of Weight Watchers (WTW) have a .88% dividend yield, based on last night’s closing stock price of $79.34. The stock has technical support in the $70 price area. If the stock can firm up, we see overhead resistance around the $85-$86 all-time high levels.

Weight Watchers International, Inc. (WTW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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