Weight Watchers (WTW) announced their earnings on Thursday August 3, 2017 after the market closed for trading at 4 p.m. EDT. Earnings and guidance was stellar. Earnings for the quarter  were $45.2 million dollars which equates to $.67 cents per share.

This Compares with  earnings of $30.5 million dollars or $0.46 per share in the same period last year. These numbers blew out the expected earnings of $0.51 per share. For the rest of the fiscal 2017 year earnings period, the company upped the guidance from $1.40 – $1.50 to $1.57 – $1.67 per share.

The short float in the company’s shares stands at 29.6%. This is a huge amount, roughly one-third of the shares are sold short which usually can incite a buying frenzy and create what is called in the trading world a “short squeeze”.

Company Comments

Mindy Grossman, the CEO and President had this to say about the earnings,

“Weight Watchers’ strong performance is due to the broad-based improvements the Company has implemented, including updating the program, enhancing the digital offerings, and refreshing the meetings experience, with a proven, science-based program, strong digital capabilities, and the support and community offered by thousands of coaches and millions of members worldwide, Weight Watchers offers a strong value-proposition that positions the Company for continued growth. By leveraging technology, innovation, and the power of community, Weight Watchers will be able to realize the full growth potential of the business and make a major impact on our members’ lives.”

Nick Hotchkin, the Company’s CFO added,

“Weight Watchers delivered another quarter of continued momentum with revenue growth in constant currency in every geographic segment, driven by compelling marketing programs in our major markets, we expect strong growth in revenues and operating income in the second half of this year.”

WTW Technicals

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The above price chart shows the daily action beginning in February, this year. You can see where price gapped up slightly after an earnings report at the time. Shares stayed in a beautiful 45-degree angle up- trendline which can be maintained for a long time.

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However, after the earnings were announced, shares created a slightly stronger uptrend line because the numbers were actually very good.

The above price chart shows the intraday trading action on Thursday, August 3rd 2017. On the left, you will see the regular trading action from 9:30 until 4 p.m. eastern Daylight Time. And on the right shows the aftermarket action.

It is clear to see how prices surged up once the earnings were announced and then settled back a  bit as the news was fully digested.