Nutrisystem, Inc. (NASDAQ: NTRI)
Nutrisystem, Inc. (NTRI), a company that provides weight management products yesterday reported their fourth quarter and full year 2016 financial results. Nutrisystem reported fourth quarter earnings of $0.29 per share which beat analyst expectations of $0.22 per share. Nutrisystem reported fourth quarter revenues of $108.9 million which beat analyst expectations of $100 million.
Nutrisystem, Inc. Board Chair and CEO Comments
Dawn Zier, President and Chief Executive Officer, stated, “In 2016, we exceeded top and bottom-line expectations as Nutrisystem continued to expand solutions for those looking to lose weight. We implemented a number of strategic actions designed to strengthen the business and propel future growth such as investments in our multi-brand strategy, new product innovation, new marketing campaigns and an enhanced customer experience.”
Ms. Zier added, “We expect our momentum to continue in 2017 with Nutrisystem having a strong start to diet season coupled with the official launch of the South Beach Diet. We are extending our reach into new segments across the large weight-loss market. We believe we are well-positioned to deliver our fourth consecutive year of double-digit revenue growth and have a plan in place that will generate long-term value for shareholders.” Business Wire
NTRI Technical Analysis
NTRI opened trading yesterday at $38.15 which was exactly the same as the previous day’s trading close. NTRI closed trading yesterday at $39.20 and spiked up after market to $46.35, equivalent to a 18% increase from the closing price. Taking a look at the daily chart we can see that the last time NTRI traded above these levels we have to go all the way back to the month of August 2007 when it traded at $46.89.
Taking a closer look at the daily chart we can see that before the spike up NTRI had already been in an overall upward trend dating back to January 30th when it traded at $32.25. NTRI has a float of 26.34 million shares and traded 2.24 times the normal daily trading volume on Monday. For trading purposes, I would like to see NTRI open trading on Tuesday above $44.00 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.40 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Nutrisystem, Inc., together with its subsidiaries, provides weight management products and services for women and men in the United States. The company offers Nutrisystem program that consists of approximately 150 portion-controlled items, which serve as the foundation of a low glycemic index diet. Its programs comprise Nutrisystem D, a program designed for people with type 2 diabetes for losing weight and managing their diabetes; Turbo10 program, a program that deliver up to a 10-pound weight loss and a reduction of 5 inches overall in the first month of dieting; and 5-day kit, a kit for individuals with or at risk of type 2 diabetes, as well as SmartCarb and PowerFuel products, including blueberry muffins, cinnamon buns, vanilla shakes, chocolate shakes, and chocolate chip cookie packs.
The company also provides My Daily 3, a physical activity program, which provides information on diet, nutrition, and physical activity; and NuMi, a digital product that integrates with wearable fitness devices and health platforms. It offers monthly food packages of frozen and ready-to-go food containing four-week meal plan of breakfasts, lunches, dinners, and snacks and flex meal plan recipes, which they supplement with fresh fruits, vegetables, and dairy. The company sells its pre-packaged foods to weight loss program participants directly through the Internet and telephone; a television shopping network; and retailers. Nutrisystem, Inc. was founded in 1972 and is based in Fort Washington, Pennsylvania.” Yahoo Finance