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Nutrisystem Beats Analysts, Announces New Magical Marketing Campaign

By  +Follow July 31, 2013 9:41AM
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After announcing second quarter results late on Monday that topped its own expectations, shares of weight-loss company Nutrisystem, Inc. (NTRI) ran ahead by almost 9 percent on Tuesday to hit their highest level since January 2012.  Profits trailed the year earlier, but still were good enough to beat analyst predictions as well, although revenue was a little thin.  On Tuesday, the company announced actress Melissa Joan Hart as its latest female spokesperson to kick-off a fresh marketing campaign.  Nutrisystem seems to be looking for some magic to keep the share climb rolling.

Hart, who is perhaps best known for her role as “Sabrina, the Teenage Witch,” will join the ranks of other famous “spokesdieters” to endorse Nutrisystems, which have included singer/actress Marie Osmond and football stars Terry Bradshaw and Dan Marino, to name a few.  Former football player and now ESPN employee Mike Golic also was a Nutrisystem spokesman who in 2009 told TMZ that some of the food is good, some is awful.  Still, though, Golic claimed to have lost more than 50 pounds on the system in his ongoing battle to control his health after being diagnosed with Type 2 diabetes in 2005.

To recap the earnings release, Nutrisystem reported revenue of $97.5 million, down from $124.6 million in the year prior quarter.  Adjusted earnings for the quarter totaled $6.4 million, or 22 cents per share, compared to $4.1 million, or 14 cents per share, in the quarter ended June 30, 2012.

Nutrisystem had previously forecast earnings in the range of 15 cents to 20 cents per share.  Wall Street was expecting EPS of 19 cents on revenue of $100.3 million.

Meanwhile, the company announced a dividend of 17.5 cents per share to shareholders of record as of August 8 and boosted its adjusted earnings per share outlook for the full 2013 year to the range of 27 to 35 cents, up from the previously announced range of 23 to 33 cents.  Analysts were predicting 33 cents per share in profits for the year.

For the current quarter, Nutrisystem expects earnings between 8 cents and 13 cents per share, just shy of the 14 cents per share Wall Street was looking for.

Back to the former teenage witch, Nutrisystem said that Hart, who currently stars in ABC’s “Melissa & Joey,” has already lost 30 pounds on their program, although it doesn’t say how long Hart has been on the program.  Some assumptions can be made based upon Hart giving birth to her third child last September.  Unlike rival Jenny Craig, Nutrisystem has said that they don’t pursue spokespersons with the intention of treating them as guinea pigs to lose weight; they approach people after hearing that they have had success on the system. 

Hart has quickly hit the Twittersphere with the new endorsement deal, making several tweets mentioning the company in the past day.

Ultimately, shareholders are not going to be too wrapped-up in who is promoting the product, but it does help keep Nutrisystem in front of diverse demographics, which helps with sales and that’s something Nutrisystem needs more of.  Some rising sales, coupled with the continued cost cutting measures that have been employed by the company, will continue to fatten the share price, not put it on a diet.  There’s nothing magical about that equation.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for NTRI
temmert
18 Dec 14 12:33:24
RT @AmericanBanking: B. Riley Reiterates Buy Rating for NutriSystem $NTRI http://t.co/Dz9n5ilYvT
TalkMarkets
18 Dec 14 11:46:31
#SmallCap Best & Worst Report $FARO $ANGO $ETM $EVOL $NTRI $ISSC $NAII $AIQ $CDE $CYTR http://t.co/0fZToeYX3j http://t.co/Y3EO7Y4Q76
ProVesting
18 Dec 14 09:09:04
$NTRI $WMT: Weight Watchers: Can Any Value Be Found? http://t.co/O6mCzcViPL http://t.co/NFkEblrPPb
Seeking Alpha
18 Dec 14 08:59:37
Weight Watchers: Can Any Value Be Found? http://t.co/07yXPllHdB $NTRI $WTW
TalkMarkets
18 Dec 14 05:56:19
Small Cap Best & Worst Report $FARO $ANGO $ETM $EVOL $NTRI $ISSC $NAII $AIQ $CDE $CYTR http://t.co/0fZToeYX3j
Stock_Tracker
16 Dec 14 20:51:41
Nutrisystem Inc (NTRI) 18.81 $NTRI Central Garden & Pet's Q4 Loss Narrower than Expected - Analyst Blog Zacks http://t.co/RkbmyxLbhN
US Banking News
16 Dec 14 20:11:05
B. Riley Reiterates Buy Rating for NutriSystem $NTRI http://t.co/Dz9n5ilYvT
temmert
16 Dec 14 08:57:19
RT @RatingsNetwork: NutriSystem's buy rating reiterated at B. Riley. $25.00 PT. http://t.co/L16nbfDSkH $NTRI #NTRI
Analyst Ratings
15 Dec 14 22:17:35
NutriSystem's buy rating reiterated at B. Riley. $25.00 PT. http://t.co/L16nbfDSkH $NTRI #NTRI
US Consumer News
15 Dec 14 22:17:33
NutriSystem's buy rating reiterated at B. Riley. $25.00 PT. http://t.co/q3TpUOhjtx $NTRI #NTRI
Daily Contracts
15 Dec 14 10:28:01
Real-Time feed of company contracts, original agreements and executive updates from Nutrisystem $NTRI http://t.co/opbqn0MGeL
Daily Contracts
15 Dec 14 09:47:01
Real-Time feed of company contracts, original agreements and executive updates from Nutrisystem $NTRI http://t.co/opbqn0MGeL
$GSCT
15 Dec 14 09:23:24
RT @luvmyhub: My only green stocks $NTRI and $KKD #Irony
Chess
15 Dec 14 09:19:16
RT @luvmyhub: My only green stocks $NTRI and $KKD #Irony
It's A Secret
15 Dec 14 09:18:58
My only green stocks $NTRI and $KKD #Irony
chartguy89
12 Dec 14 21:51:19
NTRI -0.16% Stock Charts $NTRI Nutrisystem Inc. (NASDAQ) Last Updated: 12/12/2014 23:51:21 NTRI Stock Chart - http://t.co/EioEU62fgv
Pot$tocker
12 Dec 14 20:19:37
BEST BUYS $10+ $ZDPY, $JOBI, $DDEJF, $GWPH, $INSY, $SNY, $NKTR, $ABBV, $MRK, $ABT, $IPSEY, $MUSA, $NTRI
Daily Contracts
12 Dec 14 10:00:00
Real-Time feed of company contracts, original agreements and executive updates from Nutrisystem $NTRI http://t.co/opbqn0MGeL
equities.com
11 Dec 14 20:25:42
NutriSystem Inc (NTRI) Hits New 52-week High During December 10 Session $NTRI http://t.co/9n3INpNNjl
TalkMarkets
11 Dec 14 18:52:14
Small Cap Best And Worst Report - December 11, 2014 $NTRI $ANAC $AVID $CFNL $CMN $ISSC $AIQ $CYTR $DRYS $GSS http://t.co/wXyPsL3PYZ
TickerChirp
11 Dec 14 14:54:04
Most Popular Tweets About $NTRI (Nutri System Inc symbol NTRI) on 12/11/2014 http://t.co/x13jEelJmK
Market Int Center
11 Dec 14 11:13:05
Potential NutriSystem $NTRI Trade Targets 5.02% Return ( http://t.co/MM0BYkPkTm )
Langan Stocks
11 Dec 14 08:57:03
DennyT: NTRI Stock 19.49 Nutrisystem Inc $NTRI Hit a 52 http://t.co/Rg5m2k5v6S
DennyT
11 Dec 14 08:56:09
NTRI Stock 19.49 Nutrisystem Inc $NTRI Hit a 52 week high of 19.30 Closing the day 09:42 at 19.49 +0.55 +2.90% http://t.co/EBxFy1zBuJ
DennyT
11 Dec 14 08:55:45
$NTRI NTRI 19.49 Nutrisystem Inc $NTRI Hit a 52 week high of 19.30 Closing the day 09:42 at 19.49 +0.55 +2.90% With http://t.co/6yLjgnKLsY
Large Void Bot
11 Dec 14 06:44:15
New 52wk Highs: $NTRI
TalkMarkets
11 Dec 14 06:04:02
#SmallCap Best And Worst Report - December 11, 2014 $NTRI $ANAC $AVID $CFNL $CMN $ISSC $AIQ $CYTR $DRYS $GSS http://t.co/d60s8U5x4o
Jake13
11 Dec 14 01:01:49
$NTRI NTRI Stock year to date has changed +15.21% percent. +5.69% in the last 30 days. $NTRI Nutrisystem Inc Full br http://t.co/BLg1kB6meQ
iHangout
11 Dec 14 00:41:40
chartguy89: $NTRI NutriSystem Inc: NTRI 18.94 Nutrisystem Inc Stock Charts $NTRI http://t.co/IwBRDxcDBl
				
				
By  +Follow July 31, 2013 9:41AM
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