Yesterday, Weight Watchers (WTW) announced fourth quarter earnings that were 14% higher than expectations with earnings of $.64 compared to the consensus of $.56. Moreover, forward guidance showed earnings per share (EPS) of $2.75 for 2011, but Weight Watchers (WTW) now forecasts that EPS would be between $3.50 and $3.85 for the coming year.
The news sent the stock price of Weight Watchers (WTW) skyrocketing as the stock gapped up from a closing price of $44.92 on Wednesday to an opening price of $59.00 on Thursday, eventually reaching a high of $66.22.
Zacks Investment Research anticipated this move on Wednesday when one of its premium subscription services made a buy recommendation on Weight Watchers (WTW). Editor and Analyst, Mike Vodicka, explains, "We believed that Weight Watchers (WTW) would have a strong announcement when we observed that the 30-day consensus was trending higher than the full consensus. This indicated that more bullish estimates were preceding the report."
Called Zacks Whisper Trader, this premium service has predicted positive earnings surprises with 77.96% accuracy.
Whisper Trader is presently closed to new members, but has established a Waiting List of investors to be notified when spots open up.
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