Weight Watchers share price rises by 12.57 per cent as it surpasses expectations in the first quarter
Weight Watchers shares have soared by over 14 per cent in after hours trading, after the company’s results for the first quarter came in ahead of expectations.
Net revenue declined by 4.7 per cent, from $322m (£222m) in the first quarter of 2015, to $307m. The company posted a loss of $0.17 per share, compared with a loss of $0.10 per share in the same period of last year.
Net losses widened to $10.8m from $5.4m – however this was narrower than analysts had forecast.
The group also improved its outlook for the full year, and raised its 2016 earnings guidance to between $0.80 and $1.05 per fully diluted share, from $0.70 to £1.00.
Meanwhile, end of period subscribers grew by five per cent year-on-year to 3.1m. Analysts have hailed the so-called "Oprah effect" for helping to boost subscriber numbers. Oprah Winfrey bought a stake in the weight loss company last year, and took up a place on its board of directors.
"Our first quarter loss was smaller than we expected, and for the first time since 2012 we grew our total subscribers year-over-year, clearly demonstrating that our business is turning around," said Jim Chambers, the company's president and chief executive.