Nutrisystem Goes Red
Nutrisystem (NAS: NTRI) reported earnings on Monday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nutrisystem beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly, and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Nutrisystem chalked up revenue of $66.9 million. The four analysts polled by S&P Capital IQ anticipated a top line of $64.4 million on the same basis. GAAP reported sales were 24% lower than the prior-year quarter's $87.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.04. The five earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. GAAP EPS were -$0.04 for Q4 against $0.26 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.6%, 990 basis points worse than the prior-year quarter. Operating margin was -3.6%, 1,660 basis points worse than the prior-year quarter. Net margin was -1.7%, 980 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $134.2 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $414 million. The average EPS estimate is $0.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 822 members rating the stock outperform, and 94 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 191 give Nutrisystem a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nutrisystem is outperform, with an average price target of $16.25.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy
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