Weight Watchers, facing increasing competition from diet apps and calorie-counting gadgets, forecast a full-year adjusted profit far below estimates, sending its shares down as much as 20 percent after the bell.
Weight Watchers, which also announced plans to "resize," said it expected to earn $1.30-$1.60 per share in 2014 - well below the average analyst forecast of $2.78, according to Thomson Reuters.
The start of our year is proving to be every bit as challenging as we thought, if not more so,'' Chief Executive Jim Chambers said on a conference call with analysts on Thursday.
The company said it would finalize plans to reorganize its business during the current quarter. The costs associated with the plan are not included in the earnings forecast, it said.
Wedbush Securities analyst Kurt Frederick described the outlook as "shockingly bad."