At the publication of the third-quarter results, Weight Watchers International (WTW) updated its full-year GAAP EPS guidance to a range of $3.15-3.25, compared to a prior range of $3.10-3.25. Given the lower-than-expected tax rate, the guidance should have been updated much higher if everything went well operationally. But this didn’t seem to be the case. We called the updated guidance a profit warning (in disguise).
“Remember, there is never just one cockroach.” This is one of Dennis Gartman’s 19 rules of trading. This means that the lesson of bad news is