Nutrisystem (NTRI) Beats Q2 Earnings & Sales; '16 View Up
Zacks Investment Research | Jul 27, 2016 11:22PM ET
Nutrisystem Inc. (NASDAQ:NTRI) reported second-quarter 2016 adjusted earnings of 54 cents per share, which beat the Zacks Consensus Estimate by 3 cents and surged 32% on a year-over-year basis. Adjusted earnings include 3 cents of initiative expenses related to the South Beach Diet and Shake360.
Revenues increased 15% to $149.8 million and edged past the Zacks Consensus Estimate of $149 million. Revenues were almost in line with the high-end of the management’s guided range of $145 million to $150 million.
The impressive performance was primarily driven by new customer growth, improved reactivation revenue ($36 million, up 17% from the year-ago quarter) and higher revenue per customer in the direct channel. Strong demand for products like Turbo10, TurboShakes and Uniquely Yours were the primary growth drivers.
Revenues from new customers in their initial diet cycle were up over 15% in the quarter, primarily driven by increased customer starts, improved pricing, higher shake purchases and increased sales of more flexible options that the company is marketing.
Gross margin increased 190 basis points (bps) to 53.9% in the quarter. Direct-to-consumer margins grew as a result of historical price increases, less promotional spending and stringent cost management.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.