Nutrisystem (NTRI) Reports In-Line Q3 EPS, Revenues Miss; Offers FY18 EPS/Revenue Outlook

Nutrisystem (NASDAQ: NTRI) reported Q3 EPS of $0.54, in-line with the analyst estimate of $0.54. Revenue for the quarter came in at $159.3 million versus the consensus estimate of $164.04 million.

Dawn Zier, President and Chief Executive Officer, stated, “I’m pleased we delivered year-over-year growth in the third quarter and adjusted EBITDA and earnings per share are aligned with expectations. South Beach growth remains strong and, most importantly, we see a clear path to return the Nutrisystem brand to growth in 2019.”

Ms. Zier added, “During the second half of the year we’re focused on positioning our company for a return to meaningful growth in 2019. We’re doing this in three primary ways and have arrived at the proof points that give us confidence that our plans will deliver that. First, our innovation efforts are centered around personalized nutrition and flexibility to better engage with consumers both at the start and throughout their journey to optimal health. Second, our new creative for 2019 supports our evolving brand promise, resonates well with consumers, and we’re seeing early evidence that our creative approach will drive response and engagement. And finally, we’re actively refining our media deployment strategy to expand reach, grow digital, and increase marketing efficiency. We’re excited about our future.”

Mike Monahan, Chief Financial Officer, commented, “Our third quarter and year-to-date results demonstrate the strength of our business model as we continued to generate increased free cash flow. Our strong balance sheet has allowed us to repurchase $26.3 million of stock in the first nine months of this year, and as of September 30, 2018, we had approximately $92.6 million in cash and cash equivalents and short-term investments, and no long-term debt. The Board of Directors has authorized a new $75 million buyback program set to expire October 2020. We will continue to utilize our balance sheet to enhance the long-term value of our company.”

GUIDANCE:

Nutrisystem sees FY2018 EPS of $2.08-$2.13, versus the consensus of $2.10. Nutrisystem sees FY2018 revenue of $691-696 million, versus the consensus of $701.09 million.

For earnings history and earnings-related data on Nutrisystem (NTRI) click here.

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