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NutriSystem Bounces on Buyback

Shares jump after a solid 2007 outlook.

NutriSystem (NTRI) - Get Nutrisystem, Inc. Report surged 10% Wednesday after the weight loss outfit guided higher for 2007 and set a $200 million stock buyback.

The Horsham, Pa., company said it expects to make $3 to $3.10 a share for 2007, well above the $2.91-a-share Thomson Financial analyst consensus estimate. The company sees revenue in a range of $720 million to $740 million, compared with the $740 million estimate.

The news comes just two weeks after NutriSystem shares

tanked on news of a soft first-quarter outlook. Shares lost a third of their value over two weeks leading up to the company's Jan. 30 earnings warning.

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"We are very pleased with our start in 2007," CEO Michael Hagan said Wednesday afternoon. "Our advertising continues to perform, our new market segments provide us additional visibility for growth, and our revenue stream from ex-customers is starting strong."

After dropping from the high 60s into the low 40s earlier this year, shares rose $4.53 to $48.41 in postclose action Wednesday.