NutriSystem Earnings: Here’s Why Shares are Up Now

NutriSystem Inc. (NASDAQ:NTRI) delivered a profit 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. Shares are up 0.61%.

NutriSystem Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 29.03% to $0.22 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Decreased 21.75% to $97.47 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NutriSystem Inc. reported adjusted EPS income of $0.22 per share. By that measure, the company beat the mean analyst estimate of $0.19. It missed the average revenue estimate of $100.3 million.

Quoting Management: Dawn Zier, President and Chief Executive Officer, said, “Year-to-date adjusted earnings increased 8 cents from the prior year, up 57%, driven by continued gross margin improvement, careful management of marketing spend and G&A expense discipline. We successfully increased our average selling price through the execution of cross-sell initiatives and reduced discounting, as well as improved our reactivation yield through segmentation and targeting. While response and conversion remained challenged, these improvements, combined with our retail success at Walmart, are enabling us to deliver on the plan we outlined at the start of the year.”

Key Stats (on next page)…

Revenue decreased 7.51% from $105.38 million in the previous quarter. EPS increased to $0.22 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.13 to a profit $0.15. For the current year, the average estimate has moved up from a profit of $0.31 to a profit of $0.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)