NutriSystem Earnings: Here’s Why Investors are Selling Shares Now

NutriSystem Inc. (NASDAQ:NTRI) had a loss and missed Wall Street’s expectations, AND 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 down 1.33%.

NutriSystem Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.18 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Decreased 6.56% to $62.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NutriSystem Inc. reported adjusted EPS loss of $0.18 per share. By that measure, the company missed the mean analyst estimate of $-0.14. It missed the average revenue estimate of $63.85 million.

Quoting Management: Dawn Zier, President and Chief Executive Officer of Nutrisystem, said, “Since my arrival at Nutrisystem in November, we have conducted a comprehensive review of the company, identifying our strengths while taking a clear-eyed view at our opportunities to improve. It’s evident we have a strong brand and a nutritionally-balanced and science-based weight loss program that works. That said, we need to aggressively attract new customers across broader segments to the brand, address a pricing strategy that has relied too heavily on discounting, and offer more flexible and varied program options coupled with new products and services across all phases of a customer’s weight loss journey. The first priority in our turnaround plan has been to focus on margin improvement and cash efficiency, because this immediately increases shareholder value and frees up financial resources to reinvest in our business to drive key strategic initiatives. We are already making progress on this front, as we have improved year-over-year gross margins, optimized marketing spend by channel, and reduced operating expenses.”

Key Stats (on next page)…