Nutrisystem weighed down by charges in 3Q

Nutrisystem's revenue improves but net income weighed down by one-time charge

Associated Press

NEWS: Nutrisystem Inc. on Monday reported a drop in its third-quarter net income due to one-time charges, but its adjusted results beat market expectations. Its stock jumped 11 percent in extended trading following the release of the earnings report.

DETAILS: The weight-loss company said that its turnaround efforts are paying off, reflected in its improved revenue and increased number of new clients. It was weighed down by a charge for settling a supplier dispute that cut its earnings per share by 14 cents.

NUMBERS: Nutrisystem reported net income of $356,000, or 1 cent per share, for the quarter that ended Sept. 30. That is compared with $2.6 million, or 9 cents per share, last year. On an adjusted basis, it earned 15 cents per share versus 10 cents last year.

Revenue increased 5 percent to $85.4 million.

Analysts polled by FactSet were anticipating earnings of 13 cents per share on revenue of $81.3 million.

FUTURE: The company said that it is approaching the upcoming diet season, which typically starts around the new year, with "cautious optimism."

Nutrisystem expects its fourth-quarter adjusted earnings will come in between a 2 cents-per-share profit and 2 cents-per-share loss. Analysts had forecast a penny-per-share loss for the period. The company expects its revenue will increase in the mid-single digits year-over-year.

STOCK: Nutrisystem's stock was up $1.65 to $16.67 in after-hours trading.

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