Weight Watchers plunges 13% after posting mixed third-quarter earnings

Shares of WW, formerly Weight Watchers, plunged as much as 15% on Tuesday after the company released mixed third-quarter results.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: 68 cents per share vs. 66 cents per share expected
• Revenue: $348.6 million vs. $353 million expected

WW reported third-quarter net income of $47.1 million, or 68 cents a share, down 33%, from $70.1 million, or $1 a share, in the year-ago quarter. Sales rose about 5%, to $348.6 million, from $365.8 million in the same period last year.

The company raised its full-year outlook to a range of $1.63 to $1.75 a share. Analysts polled by Refinitiv had been expecting $1.72 a share.

At the end of the quarter, WW had 4.4 million members, up about 6% from the year-ago quarter. That number was down slightly from the second quarter, though WW’s membership typically peaks at the beginning of the year after the holidays when people commit to New Year’s resolutions.

Fewer people are paying to attend WW’s meetings, the decades-old staple of the company’s program. These memberships, known as studio plus digital, are more expensive than the digital-only subscription.

WW CEO Mindy Grossman in an interview with CNBC said the company is focused on boosting studio plus digital subscriptions. She said losses in the business are narrowing and she anticipates it will return to growth.

Shares of WW recovered somewhat, but were still down by more than 12% in after-hours trading.

The company will introduce its new weight management program on Monday.