Weight Watchers Q3 Results Top Estimates; Suspends Dividend - Quick Facts

(RTTNews) - Weight Watchers International, Inc. (WTW) reported third quarter 2013 net income of $60.3 million versus $67.4 million in the prior year period. Earnings per share were $1.07 versus $1.20 in the prior year period. The company noted that progress on cost cutting has allowed it to exceed its third quarter profit expectations.

Revenues for the quarter were $393.9 million, down 8.5% from $430.6 million in the prior year period. International meeting revenues were down 11.1% on a constant currency basis versus the prior year period, primarily driven by lower revenues in the U.K.

Analysts polled by Thomson Reuters expected the company to earn $0.84 per share for the quarter on $386.50 million. Analysts' estimate typically exclude special items.

Looking ahead, the company expects fourth quarter revenues to be down low double digits given its continuing negative recruitment trends. The company added that 2014 will be a very challenging year, while it is working aggressively on both near-term commercial activities and longer-term strategic initiatives.

At the same time, the company has raised its full year 2013 earnings guidance to a range of between $3.85 and $3.95 per share as compared to its previously provided range of between $3.55 and $3.70 per share, while analysts' estimate $3.64.

The company also announced that it has suspended its quarterly cash dividend.