Weight Watchers (NASDAQ: WTW) reported Q3 EPS of $1.00, $0.01 better than the analyst estimate of $0.99. Revenue for the quarter came in at $366 million versus the consensus estimate of $379.37 million.

• End of Period Subscribers in Q3 2018 up 25% year-over-year to 4.2 million
• Total Paid Weeks in Q3 2018 up 24% year-over-year
• Revenues in Q3 2018 of $366 million, up 13%, or 14% on a constant currency basis, year-over-year
• Gross margin percentage of 58.9% in Q3 2018, up from 54.7% in the prior year period
• Operating Income in Q3 2018 of $119 million, up 30%, or 31% on a constant currency basis, year-over-year
• EPS in Q3 2018 of $1.00, up from $0.65 in the prior year period
• Updated FY 2018 earnings guidance to an EPS range of $3.15 to $3.25. Prior earnings guidance was between $3.10 and $3.25 per fully diluted share.

“Reflecting continued strong consumer response to WW FreestyleTM, we ended the quarter with 4.2 million subscribers, a record for the third quarter, and up 25% year-over-year,” said Mindy Grossman, the Company’s President and CEO. “As we expand our mission from being the global leader in weight management to becoming the world’s partner in wellness, we marked a major milestone with our rebranding as WW. We are also enhancing our digital experience in ways that are meaningful to our members’ lives, including through the launch of WellnessWinsTM, our first loyalty and rewards program. We have accomplished a great deal in 2018; however, I believe the true impact of our bold moves will be realized in 2019 and beyond.”

“Our third quarter 2018 results reflect the continued momentum in our business, with strong growth year-over-year in subscribers and revenue, driving an impressive flow-through to profitability,” said Nick Hotchkin, the Company’s CFO.

GUIDANCE:

Weight Watchers sees FY2018 EPS of $3.15-$3.25, versus the consensus of $2.99.

For earnings history and earnings-related data on Weight Watchers (WTW) click here.