WW (WW) Q1 Earnings Report Preview: What To Look For

Radek Strnad /
2024/05/01 3:08 am EDT

Personal wellness company WW (NASDAQ:WW) will be reporting earnings tomorrow afternoon. Here's what to look for.

WW met analysts' revenue expectations last quarter, reporting revenues of $206 million, down 7.6% year on year. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

Is WW a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting WW's revenue to decline 17.6% year on year to $199.4 million, improving from the 18.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.47 per share.

WW Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at WW's peers in the specialized consumer services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ADT's revenues decreased 5.3% year on year, meeting analysts' expectations, and Pool reported a revenue decline of 7.1%, in line with consensus estimates. ADT traded up 1% following the results while Pool was down 1.3%.

Read our full analysis of ADT's results here and Pool's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the specialized consumer services stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. WW is up 6.4% during the same time and is heading into earnings with an average analyst price target of $6.4 (compared to the current share price of $1.82).

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