NEW YORK (AP) — Weight Watchers International Inc. on Wednesday reported profit that decreased by 17 percent in its second quarter. Still, adjusted earnings beat analysts' expectations and the company raised its guidance for the year.
The New York-based company said net income dropped to $54 million, or 95 cents per share, from $64.9 million, or $1.15 per share, in the same quarter a year earlier.
Earnings, adjusted for one-time gains and costs, were 98 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 77 cents per share.
The weight-loss program operator's revenue declined 16 percent to $397.5 million from $470.9 million in the same quarter a year ago, but topped Wall Street forecasts. Analysts expected $388.5 million, according to Zacks.
Weight Watchers faces competition from free mobile apps, and fewer people are attending its meetings.
But the company said that its turnaround plan "remains on track" and raised its earnings guidance for the year to $1.65 to $1.85 per share. It had predicted between $1.45 and $1.70 per share. Wall Street had forecast $1.63 per share, according to FactSet.
Weight Watchers International shares rose 13 cents to $21.14 in after-hours trading. The stock had gained 6 percent to close at $21.01 Wednesday, but is down 36 percent this year.