Nutrisystem Shares Up 7% On Strong Q1 Results

(RTTNews) - Shares of Nutrisystem Inc. gained over 7 percent on Monday's extended trading hours after the weight-loss products company's first-quarter revenues and profit trumped Wall Street analysts' expectations, driven largely by its "direct-to-consumer business." The company also lifted its full-year 2018 financial outlook.

Commenting on the results, CEO Dawn Zier said, "We're pleased first quarter 2018 revenue and earnings per share exceeded our expectations, driven by better than expected results in Nutrisystem's direct-to-consumer business. As anticipated, South Beach Diet revenues increased significantly year-over-year, and we remain excited about the long-term opportunity it represents."

Nutrisystem's first-quarter profit dropped to $2.8 million or $0.09 per share from $7.5 million or $0.25 per share last year. On average, seven analysts polled by Thomson Reuters expected earnings of $0.06 per share.

Revenues for the quarter decreased to $210.9 from $212.7 million a year ago. Analysts had a consensus revenue estimate of $207.3 million for the quarter.

Gross margin, or gross profit as a percentage of sales, narrowed to 53.2 percent from 53.8 percent last year.

Looking forward to second quarter, the company expects earnings of $0.78 to $0.83 per share and revenues of $186 million to $191 million. Analysts currently estimate earnings of $0.88 per share and revenues of $190.49 million.

For the full year 2018, the company now expects earnings of $2.04 and $2.14 per share revenues of $693 million to $708 million. Analysts currently estimate earnings of $2.04 per share and revenues of $697.43 million.

Earlier, the company expected earnings of $1.99 to $2.09 per share and revenues of $685 million to $705 million.

Further, the company declared quarterly dividend of $0.25 per share, payable May 21 to stockholders of record as of May 10.

NTRI closed Monday's trading at $29.00, up $0.45 or 1.58%, on the Nasdaq. The stock further gained $2.20 or 7.59% in the after-hours trading.