Weight Watchers International Inc. (NYSE: WTW) shares soared in today’s trading after the company reported stronger-than-expected fourth-quarter profits. The company saw stronger demand for meetings in North America, which boosted sales. The company’s meeting revenues in the region were up 15.1% year-over-year, driven by a 6.8% increase in attendance. The internet revenues climbed 31.1%, helped by a 38.2% improvement in active online subscribers.
The company reported fourth-quarter net income of $48.9 million, or $0.66 earnings per share as compared to $18.7 million, or $0.24 earnings per share in the prior year period. The adjusted net income for the period was up to $47.6 million or $0.64 per share from $43.6 million, or $0.56 per share last year. The revenue for three months was $356.7 million up from $311.3 million a year earlier.
For the full year, the company reported net income of $194.2 million, or $2.56 per share as compared with $177.3 million, or $2.30 in the prior year. The revenues for the full year 2010 were up 3.8% and 3.5% on constant currency basis as compared to the prior year. The company reported revenue for the year of $1.45 billion as compared with $1.39 billion prior year. The Internet business continued to strengthen throughout the year, and improved NACO meeting business performance in the last nine months of fiscal 2010 drove the revenue increase. Partially offsetting the revenue increase were first quarter revenue declines in the NACO meeting business and performance shortfalls in the UK meeting business.
The company expects full year 2011 earnings to come in between $3.50 and $3.85 per fully diluted share.
Following the announcement of fourth-quarter financial results, Weight Watchers stock is currently trading at $61.75, up 37.51% from its previous close. Weight Watchers shares touched the high of $61.62 and lowest price in today’s session is $58.27. The company stock’s beta is 1.15.
The company stock traded in the range of $24.39 and $61.62 during the past 52 weeks. The company’s market cap is $4.48 billion.
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