NutriSystem Inc. (NASDAQ:NTRI) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
NutriSystem Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.00 in the quarter versus EPS of $-0.15 in the year-earlier quarter.
Revenue: Decreased 17.99% to $105.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: NutriSystem Inc. reported adjusted EPS of $0 per share. By that measure, the company beat the mean analyst estimate of $-0.06. It missed the average revenue estimate of $122 million.
Quoting Management: Dawn Zier, President and Chief Executive Officer of Nutrisystem, said, “Profitability improved in the first quarter, indicating that our turnaround is beginning to take root. We continue to be focused on improving customer profitability and ensuring that we maximize the Company’s bottom line. To that end we made good progress this quarter by increasing revenue per customer, average selling price to new customers, and gross margins, as well as reducing overall corporate expenses.”
Key Stats (on next page)…
Revenue increased 68.56% from $62.53 million in the previous quarter. EPS increased to $0.00 in the quarter versus EPS of $-0.06 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.33 to a profit $0.30. For the current year, the average estimate has moved down from a profit of $0.37 to a profit of $0.31 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)