Published February 14, 2014
Shares of Weight Watchers (WTW) plummeted 26% Friday morning after the diet company unleashed an unhealthy full-year outlook.
The below-consensus guidance triggered a number of bearish notes from analysts, including JPMorgan Chase (JPM), which slashed its price target to $20 from $36.
Reporting after Thursday’s closing bell, Weight Watchers projected full-year EPS of $1.30 to $1.60, which is not even close to the Street’s view of $2.78.
“While we are confident that we are on the right track to execute a successful transformation, 2014 will be a very challenging year,” Weight Watchers CEO Jim Chambers said in a statement.
On the other hand, Weight Watchers posted non-GAAP EPS of 96 cents, easily trumping consensus calls for 61 cents.
The company also generated revenue of $366.1 million, topping estimates from analysts for $358 million.
Still, shares of Weight Watchers plunged 25.87% to $22.66 in recent action, leaving them more than 31% in the red on the year.