Atlanta, Nov. 6 - Weight Watchers International Inc reported better-than-expected third-quarter profit Tuesday on higher meeting fees and product sales in North America.
Shares of the weight-loss services company were up about 1 percent in after-hours trading.
Net income was $49.5 million, or 62 cents a diluted share, for the third quarter, down 2 percent from $50.6 million, or 52 cents a share, a year earlier.
The results topped 60 cents a share that analysts expected, according to Reuters Estimates.
Third-quarter earnings were reduced by higher interest expenses tied to increased debt to fund a share buyback. Also, the company had 79.6 million outstanding shares in the current quarter, down from 98 million shares a year earlier.
During a conference call, company executives cited rising retention rates among its members aided in part by new programs and a national advertising campaign.
Revenue rose 18.5 percent to $337.5 million, better than the $330.2 million that analysts expected. North America revenue rose 28 percent to $184 million, while international revenue was up 6 percent.
Meeting fees in the United States advanced 32 percent, while product sales gained 13 percent.
The company benefited from a U.S. monthly pass plan that allows unlimited meetings for less than $10 a week, on average, and demand for a product that allows members to track food intake online.
It now expects full-year earnings in the range of $2.43 to $2.48 a share, excluding 2 cents a share of nonrecurring expense.
In August, the company forecast annual profit of $2.38 to $2.49 a share, excluding the charge.
Analysts, on average, expect $2.46 a share, according to Reuters Estimates.
Weight Watchers shares were up 1 percent to $51.40 in after-hours trading from their close of $50.80, down 1 percent on the New York Stock Exchange.