Nutrisystem, Inc. (Nasdaq:NTRI) Releases Fat Financials

Nutrisystem, Inc. (Nasdaq:NTRI)

Nutrisystem, Inc. (Nasdaq:NTRI) posted earnings after the bell Tuesday and saw their shares rocket in the after-hours market. NTRI shares closed the regular session at $39.20 but have hit a high of $46 (17%+) after the company released financial results for the fourth quarter and full year.

Q4 2016 EPS was $0.29 – expectations were for $0.22. Revenue was even more impressive as the company reported $108.95 million – beating expectations by $8.75 million. For the year, Nutrisystem, Inc. (Nasdaq:NTRI) revenues came in at $545 million – an increase over the 2015 figure of $462.6 million. Net income increased 36%, and diluted EPS was up 34% ($1.19). Adjusted EBITDA was up 31% and the company returned $21 million to shareholders through dividends. The company also provided 2017 guidance – “Full year revenue expected to be in the range of $630 to $650 million, net income between $46.8 and $49.7 million, diluted income per common share between $1.55 and $1.65, and adjusted EBITDA between $95.8 and $100.3 million.”

Nutrisystem, Inc. (NASDAQ: NTRI) is a leader in the weight loss industry. The company’s weight loss solutions include Nutrisystem® My Way®, Fast 5, and Turbo 10, all structured food delivery programs that come with the digital platform NuMi® by Nutrisystem. Additionally, the company offers multi-day kits and individual products available at select retail outlets. The Company’s current product line offers customers the most meal choices, including more than 150 foods with no artificial colors, flavors, or sweeteners. Nutrisystem, Inc. (NASDAQ: NTRI) provides customers the flexibility to align their diet with the US Healthy Eating Meal Pattern, as recommended by the USDA Dietary Guidelines. Plans include comprehensive counseling options from trained weight loss coaches, registered dietitians and certified diabetes educators and can be customized to specific dietary needs and preferences. In December of 2015, the Company purchased the South Beach Diet brand.

Sales increased modestly since 2013 when the firm reported $358.1 million. In 2015, $462.6 million in sales was posted. EPS has been much more impressive. Nutrisystem, Inc. (NASDAQ: NTRI) lost $0.10 EPS in 2012 but in each of the next three years that figure moved into positive territory and in 2015 there was a profit of $0.90 EPS.

Ticker Symbol NTRI
Last Price a/o 4:31 PM EST  $                    43.55
Average Volume                    206,420
Market Cap (mlns)  $              1,120.00
Sales (mlns) $526.80
Shares Outstanding (mlns) 29.32
Share Float (mlns) 28.99
Shortable Yes
Optionable Yes
Inside Ownership 1.30%
Short Float 6.19%
Short Interest Ratio 8.7
Quarterly Return 2.83%
YTD Return 10.10%
Year Return 64.59%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.


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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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