Oct. 28, 2015 -- Company results beat Wall Street expectations. NutriSystem posted revenue of $104.9 million in the period, up 16% vs. last year. For the 4th quarter ending in December, Nutrisystem said it expects revenue in the range of $86.6 million to $91.6 million.
The company expects full-year earnings to be 91 cents to 96 cents per share, with revenue ranging from $459 million to $464 million.
CEO Dawn Zier said: “Our business model is foundationally strong. Our value proposition is differentiated from the competition and serves as the basis for our product innovation. We are well positioned to continue growing as we head into Diet Season 2016 and beyond.”
Mike Monahan, CFO, commented, “Revenue growth in the third quarter came from both our direct and retail channels, which were up year-over-year 16% and 35%, respectively. Capital expenditures are now expected to increase to approximately $12 million for the full year."
In a conference call, management said that they will come out with new packaging and labeling and have obtained more exposure at Walmart stores. They report customer volume continuing to increase and a marketing spend of $25.6 million in Q3. When questioned about Weight Watchers' deal with Oprah, they didn't think this would hurt them, as they already have a good mix of celebrity and regular person spokespersons. The firm has $47 million in cash.
See complete press release and financial tables here: