NutriSystem posts first-quarter profit drop, but handily beats estimates

NutriSystem posts 1Q quarter dip, but beats Street

HORSHAM, Pa. — NutriSystem Inc. on Monday posted a 46 percent drop in profits in the first quarter as marketing costs rose, but results beat estimates and the company said it is signing up more new customers.

Shares rose more than 9 percent in after-hours trading.

The weight-control company said it earned $4.8 million, or 15 cents a share, in the three-month period ending March 31. Last year in the same period the company earned $8.8 million, or 29 cents a share.

Revenue fell nearly 2 percent to $158.8 million from $161.8 million.

Analysts expected a gain of 12 cents per share on revenue of $155.5 million, according to Thomson Reuters.

The company said marketing costs rose $8 million, nearly 21 percent, to $56.6 million. The company said the increase was due to media rate pressure and expenses for retail startups.

CEO Joe Redling said new customer starts grew both sequentially and year-over-year in the quarter.

“We expect new customer starts to continue to strengthen in the second quarter and anticipate modest revenue growth year over year for the balance of the year,” he said in a release.

In after-hours trading, shares rose $1.75, or 9.5 percent, to $20.15.

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