Why WW Stock Is Trading Higher Today

WW International, Inc. WW shares are trading over 70% higher on Tuesday despite worse-than-expected Q4 earnings and soft Q1 guidance. The company also announced it will acquire Weekend Health, Inc. for a net purchase price of $106 million.

What to Know: On Monday, WW announced its Q4 and full-year earnings for the period ended Dec. 31, 2022 and provided guidance for Q1 2023.

The company reported a quarterly loss of $0.46 per share compared to the consensus analyst estimate of a loss of $0.11 per share. The company reported quarterly sales of $223.90 million compared to the analyst consensus estimate of $224.53 million.

In terms of guidance, the company expects sales of approximately $235.0 million for Q1 of 2023. 

Additionally, WW International announced its intentions to acquire Weekend Health d/b/a Sequence, a subscription telehealth platform offering access to healthcare providers specializing in weight management. This deal will involve WW acquiring sequence in a cash and equity transaction valued at $132 million. The deal is expected to close in Q2 of 2023.

Since Weekend Health’s launch in late 2021, the company has grown into a $25 million annual revenue run-rate business, serving ~24,000 customers across the United States.

"With our science-backed lifestyle program and Sequence's tech platform – which puts complex, slow insurance processes on tech rails – this is an unmatched opportunity for us to create an integrated product offering,” said Sima Sistani, CEO of WW.

WeightWatchers is a human-centric technology company powered by our proven, science-based, clinically effective weight loss and weight management program.

According to data from Benzinga Pro, WW International shares were up 71.7%, trading at $6.64 at the time of publication. The stock has a 52-week high of $11.03 and a 52-week low of $3.28.

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