Shares of WW International (NASDAQ: WW), formerly Weight Watchers International soared in pre-market trading on Tuesday as the company that offers weight loss and maintenance programs confirmed the acquisition of Sequence for $132 million ( including a minimum of $26 million of cash on the balance sheet of Weekend Health or Sequence). Sequence is a company that offers treatment for weight loss.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The acquisition is expected to close in the second quarter of this year and Sequence had around 22,000 members at the end of February.
Moreover, WW also announced its fiscal Q4 results and swung to a loss of $0.46 per share versus a profit of $0.42 in the same period last year while analysts were expecting a profit of $0.03 per share.
Meanwhile, revenues declined by 18.8% year-over-year to $223.9 million in Q4 and fell short of consensus estimates of $236.2 million. At the end of the fourth quarter, WW had subscribers of 3.5 million, a drop of 14.6% year-over-year.
Looking forward, the company’s management expects Q1 revenues to be around $235 million while operating losses are projected to be between $30 million and $35 million.
WW stock has not fared well in the past year and is down by more than 55%.
