WW - Why Is WW International Down 16% Wednesday Morning After Bottom-Line Beat?
Shares of WW International (NASDAQ: WW), a wellness company and weight-management program, plunged as much as 21% lower Wednesday morning despite beating bottom-line estimates. Here's what could be driving the price movement.
Starting from the top, during the third quarter, WW International posted revenue of $348.6 million, 4.7% lower compared to the prior year, which missed analysts' estimates of $352.7 million. Despite the top-line disappointment, the company's earnings per share checked in at $0.68, well below the prior year's $1.00 per share but enough to top analysts' estimates of $0.66 per share. Another factor perhaps weighing on the stock price today was a sequential decline in subscribers. Subscribers checked in at 4.4 million at the end of the third quarter, a 6% improvement from the prior year but lower than the 4.6 million during the second quarter.
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