NutriSystem (NASDAQ:NTRI) and Its Recent Growth


Yesterday’s extended market hours held a great surprise in them. The Q4 financial results had been announced after the closure of the trading session and the results reflected the elevation of NutriSystem’s (NASDAQ:NTRI) stocks from 12.83% to $19.35. This YOY was indeed a step forward for the company and surpassed the expectations set forth by the analysts.

The announcement made by NutriSystem (NASDAQ:NTRI), based in Pennsylvania,  also delineated its generated income of the latest quarter which was $79.23 million to be precise. This revenue showed a definite progress from the company’s earnings of last year.

Owing to these statistics, EPS was determined to be of 18 cents, which again exceeded the analysts’ expectations of 16 cents and reflects a dramatic growth, from last year’s EPS of merely 4 cents.

Moreover, the glad tidings do not merely end here. A report was presented by NutriSystem (NASDAQ:NTRI) that predicted a continual growth in the company’s revenue, amounting to almost 13%, in the entire year of 2014. This claim of the company is in contrast to its conventional multi-year trend. This contrast and turning around from its previously established trend can be considered as a corollary of the four-point plan which made its way through, in the start of the year 2013. The program did turn out to be pretty effective, since its results made their way home, and did so within no time at all. The company’s financial report of the last quarters of 2013 support this statement, since an increase of 8% in the company’s YOY was observed. Moreover, the company kept up with its expansion and innovation; and reaped profits from e-commerce as well. It turns out that NutriSystem’s (NASDAQ:NTRI) investment in this arena did pay off. The company’s latest report predicting a growth for the entire year of 2014 reiterates this point, since for the last six years, the company’s gross income has been going downhill.

NutriSystem’s (NASDAQ:NTRI) EPS for the year 2014 also saw a growth of approximately 69%. After 2008, 2014 is the only year where an increase in the company’s YOY has been observed. Previously, the company had witnessed its revenue coming down to 46% in fiscal year 2012. However, the new strategy which was initiated in the beginning of 2013 turned out to be fruitful for the company and it enabled NutriSystem’s (NASDAQ:NTRI) revenue to increase from 46% to 50% in the fiscal year 2013.

NutriSystem (NASDAQ:NTRI) has kept on with its provision of new and innovative products to its customers. Keeping in accordance with this trend, it has launched a new application known as NuMi app. There is a strong speculation that the company would reap immense profits from this app, leading to a gradual increase in both its profits and earnings. Moreover, NutriSystem (NASDAQ:NTRI) occupies the summit position in the list of those companies which launched wearable devices to control weight. This fact has also led to the stimulation of its revenue.

The previous year has ended up being pretty profitable for the company, since its stock saw a gradual increase of about 16%. Yet, the bad news accompanying this good one was that the stock price is going downhill. Over all, as far as the analysts’ estimates are concerned, NutriSystem (NASDAQ:NTRI) has been receiving a favorable ranking, as 5 out of total 6 analysts gave it a Buy rating.

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