Morgan Stanley Maintains Equal-Weight on Weight Watchers
Morgan Stanley remains Equal-weight on Weight Watchers (NYSE: WTW) following the company's disappointing guidance following a largely in-line Q4.
Morgan Stanley notes, "WTW Q4 EPS of $0.86 were in line with consensus, with gross profit 2% below consensus on a 2.5% topline miss. ...Q1/2012 guidance was a bigger focus, and WTW provided its initial FY12 EPS guidance of $4.20-$4.60 (consensus is at $4.56), excluding an expected $0.45-$0.60 benefit (over three quarters) from a Dutch auction. Composition of guidance was somewhat disappointing, given Q1 revenue is expected to be flat (we expect the prior $1.13 Q1 consensus to move down towards our revised $0.75 estimate) and FY meeting revenue is expected to be flattish."
WTW closed at $79.34 a share on Tuesday.
