Another comeback quarter for Weight Watchers (WW) is in the books.
The health and wellness brand reported second quarter earnings of 78 cents a share on Tuesday after the close, dusting Wall Street estimates for 65 cents a share. Total revenue came in at $369 million versus analyst projections for $377 million.
The company’s closely watched subscriber count clocked in at 4.6 million, up about 1.5% from a year ago, powered by new digital additions. The figure was generally in line with most numbers on Wall Street.
Weight Watchers CEO Mindy Grossman tells Yahoo Finance the company continued to see improvements in client retention and customer acquisition in the second quarter. Grossman adds that momentum in the business has been sustained into the third quarter.
Apparently the strength is enough for Weight Watchers to strike an upbeat note ahead of a new diet plan and fresh marketing plan that will be unveiled in the key early 2020 dieting season. Weight Watchers sees full year sales of $1.4 billion and earnings of $1.55 to $1.70 a share. Previously, the company had guided to $1.4 billion in sales and earnings of $1.35 to $1.55 a share.
Shares of the company popped more than 12% in after-hours trading Tuesday.
It was just this past February when Weight Watchers materially slashed its full year profit outlook owing to a disappointing consumer response to its new brand positioning. Prior to Tuesday’s earnings release, Weight Watchers shares had fallen about 45% year-to-date.
Grossman says her team is focused on “executing” this year. That’s one way to get the stock moving higher again.