Soft Guidance Guts NutriSystem - TheStreet

Soft Guidance Guts NutriSystem

Shares drop 15% in late trading.
Publish date:

Updated from 4:14 p.m.


(NTRI) - Get Report

sank 15% in late trading after the company guided lower for the third quarter.

The Horsham, Pa., diet company made $34 million, or 96 cents a share, for the quarter ended June 30, up from the year-ago $20 million, or 53 cents a share. Revenue surged to $214 million from $134 million a year earlier.

Analysts surveyed by Thomson Financial were looking for an 85-cent profit on sales of $194 million.

"The quarter was a very good one and we were pleased with the solid growth in our core women's market and continued strength in revenue coming from our ex-customers," said CEO Michael J. Hagan. "In addition, the growth in the men's and senior's market segments for the second quarter exceeded our expectations."

Direct channel revenue reached $202 million, up 65% over the same period in 2006. The company added 246,000 direct channel new customers, a 46% increase from the second quarter of 2006.

The company said it expects to make 77 cents to 82 cents a share for the third quarter on revenue of $200 million to $208 million. Analysts were looking for an 89-cent profit on sales of $209 million.

For the year, NutriSystem expects to make $3.46 to $3.52 a share on revenue of $810 million to $820 million. Analysts were looking for a profit of $3.43 a share on revenue of $799 million.

Shares were halted late Tuesday after falling $4.21 to $63.78 during regular action. They fell $9.25 to $54.52 after hours.