WW International fell after cutting its revenue guidance for the year, citing supply constraints for a drug used for weight loss and a shift in its subscriber base.
(Bloomberg) — WW International fell after cutting its revenue guidance for the year, citing supply constraints for a drug used for weight loss and a shift in its subscriber base.
The company, which sells subscription weight-loss programs, now sees revenue for the full year in a range of $890 million to $910 million — a reduction of $20 million from its previous guidance and below the average estimate compiled by Bloomberg. The US is experiencing a widespread shortage of medications, including a class of drugs that WW will provide to some users.
The shares slipped 1.9% at 5:05 p.m. in late trading in New York. The stock has nearly doubled in value so far in 2023.
Second-quarter revenue also fell short of the average analyst estimate. The miss comes after the diet company acquired telemedicine startup Sequence to start selling GLP-1s, a medication used for diabetes and weight loss. In March, the $132 million deal sent the stock into its biggest jump since October 2015.
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The company is adding a plan for patients on GLP-1s in the fall, and beat analyst estimates on subscription numbers.
–With assistance from Madison Muller.
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