Earnings Preview for Weight Watchers (WTW)

Weight Watchers WTW is scheduled to report first-quarter 2011 results before the opening bell tomorrow, May 6. Analysts are looking for the weight loss specialist to announce that earnings came in at $0.89 per share. That compares to a consensus estimate of $0.60 some 90 days ago, and is up 34.8% from earnings a year ago. Weight Watchers fell short of consensus earnings estimates in just one of the past five quarters. New York-based Weight Watchers provides weight management services in 30 countries. In some 45,000 weekly meetings facilitated by 12,000 leaders, the company offers nutrition advice and exercise tips to help its 1.2 million members lose weight. It also offers advice and recipes on its website and sells products, including recipe books, a Weight Watchers magazine, snacks and vitamins. During the three months that ended in March, Weight Watchers offered full-year guidance that was higher than the consensus forecast, and it also announced initiatives with Appleby's restaurant and CVS Caremark CVS pharmacies. The consensus revenue forecast for that period calls for $473.8 million. That is an increase of 23.3% from the same period of last year. The share price is up more than 100% year-to-date, much of that gain following the fourth-quarter earnings report and guidance. The stock has pulled back from the recent multi-year high of $79.36, though, and opened today at $75.59.