NutriSystem Soars on Guidance

The stock adds 22% after the weight-loss company boosts revenue expectations.
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(NTRI) - Get Report

surged 22% late Wednesday after the weight-loss shop blew out second-quarter numbers and sharply raised guidance.

The Horsham, Pa., company made $4.3 million, or 12 cents a share, up from $758,000, or 2 cents a share a year ago. Revenue jumped 346% from a year ago to $41 million. Analysts had been expecting earnings of 9 cents a share on revenue of $30 million.

Better yet, NutriSystem boosted full-year revenue guidance, saying it would post a 2005 top line of $150 million to $155 million. Analysts had been looking for $109 million.

"Second-quarter revenues were exceptional as we grew through the seasonal drop-off that normally occurs in the weight loss industry after the first quarter," said CEO Michael J. Hagan. "The quarter started strong and ended stronger. In our direct channel, June was the strongest month for revenues in the first half of 2005. We believe the effectiveness of customer referrals and the success of our aggressive, multi-channel marketing programs are driving the increasing popularity of the NutriSystem weight-loss program."

Late Wednesday, NutriSystem jumped $3.59 to $20.