Tuesday after the bell, weight management company Nutrisystem, Inc. (NTRI) reported a decrease in profit for the third quarter, compared to the year-ago period as revenues declined significantly on lower demand for products and services. The company also provided its earnings expectations for the full year 2009.
Nutrisystem's profit declined to $8.45 million or $0.27 per share from $13.53 million or $0.43 per share in the year-ago period.
Income from continuing operations decreased to $8.51 million from $13.69 million a year ago. On a per share basis, income from continuing operations decreased to $0.27 per share from $0.44 per share.
Analysts polled by Thomson Reuters expected earnings of $0.24 for the quarter. Analysts' estimates typically exclude one-time items.
Revenue decreased to $127.0 million from $162.7 million in the year-ago period on lower sales of weight management products and services.
Total costs and expenses for the quarter decreased to $113.75 million from $140.56 million a year earlier.
For the nine-month period, net income declined to $26.07 million or $0.84 per share from $49.58 million or $1.53 per share last year. Revenue decreased to $421.53 million from $573.17 million a year ago.
Going forward, the company expects earnings of $0.99 to $1.01 per share for the full year. Analysts expect earnings of $1.00 per share for the full year.
The company has also announced a quarterly dividend of $0.175 per share; payable on November 16, 2009, to shareholders on record as of November 6, 2009.
NTRI closed Tuesday's regular trading session at $18.93, down $0.38, on the Nasdaq.
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