Weight Watchers Surges After Oprah Effect Helps Fuel Profit.

Weight Watchers International Inc. surged after the diet company backed by Oprah Winfrey posted an unexpected profit and added subscribers for the fifth straight quarter.

The shares jumped as much as 14 percent in extended trading Tuesday after the company said earnings were 16 cents a share in the period ended April 1. Analysts had projected a loss of 4 cents.

Weight Watchers has been mounting a comeback since Winfrey took a stake in the company and agreed to pitch the brand in October 2015. The company ended the period with 3.6 million subscribers, up 16 percent from a year earlier. The gains also prompted the company to boost its full-year earnings forecast.

In addition to the marketing boost from Winfrey, an improved weight-loss program and technology investments are helping retain customers, said Nick Hotchkin, the company’s chief financial officer.


By Craig Giammona.
Full story at Yahoo News.