Friday, February 21, 2020 5:50:58 PM
The WW Analyst
Linda Bolton Weiser upgraded WW from Neutral to Buy and increased the price target from $33 to $56.
The WW Thesis
The 2020 consensus sales growth estimate of 5% for WW is modest, Bolton Weiser said in a Friday note. The analyst estimates subscriber growth could be at least 10% in the first quarter and 2020, basing her view on the recent trends and the third-quarter subscriber number of 4.43 million.
Historically, WW's subscriber numbers decline sequentially in the second quarter through the fourth quarter, and increase by double-digits in the first quarter. The analyst estimates a 20% sequential increase in subscribers in the first quarter of 2020, slightly higher than the 17% growth in the first quarter of 2019, which was a "bad" year without a new program launch.
In 2020, there is the myWW plan, which is being well received. For the remainder of 2020, Bolton Weiser models 9-10% growth range for each quarter, if the magnitude of sequential decline by quarter follows the same trend in 2019.
The analyst's conservative estimate calls for the company to end 2020 with 4.6 million subscribers.
For the first quarter, DA Davidson estimates sales of $378 million, EBITDA of $50.9 million and gross margin of 56.3%. This compares to the consensus estimates, which call for sales of $382 million, EBITDA of $42.3 million and gross margin of 55.8%.
The company is scheduled to report its fourth-quarter results Tuesday.
WW Price Action
WW's stock traded higher by 2.2% to $38.65 per share at time of publication.
Recent WW News
- WW International, Inc. Schedules First Quarter 2024 Earnings Conference Call • GlobeNewswire Inc. • 04/18/2024 08:01:00 PM
- WeightWatchers Appoints New Executive Leaders • GlobeNewswire Inc. • 04/11/2024 01:05:00 PM
- Unilever Initiates Ice Cream Division Spin-Off and Announces Job Cuts; Berkshire Ramps Up Share Buyback Efforts, and More • IH Market News • 03/19/2024 11:33:10 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 09:43:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 09:48:35 PM
- WW International, Inc. to Present at the Morgan Stanley Technology, Media & Telecom Conference • GlobeNewswire Inc. • 03/01/2024 02:25:00 PM
- Shares of WW International Plummet after Oprah Exits, EA Announces Workforce Reduction and Restructuring Plan, and Latest News • IH Market News • 02/29/2024 11:11:43 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/28/2024 09:06:34 PM
- WW International, Inc. Announces Upcoming Oprah Winfrey Board Transition • GlobeNewswire Inc. • 02/28/2024 09:03:00 PM
- WW International, Inc. Announces Fourth Quarter and Full Year 2023 Results • GlobeNewswire Inc. • 02/28/2024 09:01:08 PM
- WW International, Inc. Schedules Fourth Quarter and Full Year 2023 Earnings Conference Call • GlobeNewswire Inc. • 02/14/2024 09:01:00 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/14/2024 11:58:51 AM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/12/2024 06:08:58 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/09/2024 04:55:34 PM
- Labcorp Elevates Employee Health Benefits with WeightWatchers for Business Full-Spectrum Weight Health Platform • GlobeNewswire Inc. • 02/07/2024 02:05:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 01/24/2024 09:09:27 PM
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- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/03/2024 09:58:07 PM
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