Winfrey-backed Weight Watchers' stock slammed on profit warning
Oprah Winfrey stands to see the value of her investment in Weight Watchers shrink after the company said it hasn't signed up as many subscribers as it hoped this winter and expects its profits to suffer.
Weight Watchers International's stock tumbled 36 percent, or $10.64, to $18.93 in premarket trading Wednesday morning after it released its fourth-quarter earnings after the market closed on Tuesday. If that carries over into regular-session trading Wednesday, it would translate to a paper loss of about $50 million for Winfrey. As
The New York-based weight-loss program operator said it now expects to earn between $1.25 and $1.50 a share this year. Analysts polled by FactSet had been expecting $3.38 a share.
CEO Mindy Grossman said the company hopes to pull in more subscribers this spring, with Winfrey playing a central role in its upcoming TV and digital marketing campaign.