Weight Watchers is taking off after the company reported stronger than expected first quarter earnings.
The weight loss company posted an unexpected profit of $US0.16 per share, much higher than analysts’ expectations of $US0.04 per share.
The firm also beat on revenue as well, generating $US329 million for the quarter. This was above the $US323 million estimated by analysts.
Additionally, the company raised its guidance for the full year EPS to $US1.40 to $US1.50. The company has previously projected $US1.30 to $US1.40 per share for the year.
“In the first quarter, we delivered strong revenue growth and achieved a 16% increase in end of period subscribers versus the prior year period,” said Nick Hotchkin, interim CEO, said in a press release on Tuesday.
The company’s stock has taken off after media mogul Oprah Winfrey signed on to be an investor and advertise for the firm.
Following the news, share of Weight Watchers soared in post-market trading. As of 4:28 p.m. ET, the stock was up 11.4% to $US23.60 per share.