FORT WASHINGTON, Pa. (AP) -- Shares of Nutrisystem Inc. rose Tuesday after the weight-loss company posted greater second-quarter net income and raised its estimates for the full year.
Nutrisystem said its net income was stronger than expected, as a decline in sales was balanced by lower costs. The company's revenue fell 22 percent in the second quarter, but Nutrisystem said pressure on its revenue should ease in the second half of the year.
The shares advanced 60 cents, or 5.2 percent, to $12.10 in midday trading. Earlier the stock set an annual high of $12.38.
Nutrisystem said its net income increased to $6.4 million, or 22 cents per share, from $4.1 million, or 14 cents per share. Revenue fell to $97.5 million from $124.6 million.
Analysts expected net income of 18 cents per share and $101 million in revenue, according to estimates compiled by FactSet.
Nutrisystem is now forecasting net income of 27 to 35 cents per share in 2013, above its previous estimate of 23 to 33 cents per share. The company said it should earn between 8 and 13 cents per share in the third quarter.
Analysts expect Nutrisystem to report net income of 33 cents per share for the year, including 14 cents per share in the current quarter.