This Bull of the Day is in the Health and diet category that’s been pushing past all expectations and is now considered a strong buy. Check out Tracey Ryniec’s post below
Nutrisystem, Inc. is on the right side of the health and wellness debate. This Zacks Rank #1 (Strong Buy) just raised full year guidance for the second time this year.
Nutrisystem is famous for weight loss programs including Nutrisystem My Way, its 28-day food delivery program. Feeding on the healthy food frenzy sweeping the nation, the company’s meal choices including 100 foods which do not contain artificial preservatives or flavors.
Plans can also be customized for specialized diets, including those with Type 2 diabetes or pre-diabetes.
Another Beat and Raise
On July 29, Nutrisystem reported its second quarter results and beat the Zacks Consensus Estimate by 4 cents. Earnings were $0.41 compared to the consensus of $0.37.
Revenue rose 17% to $130.3 million as both direct and retail channels remained strong. Diret rose 15% year over year while retail grew 43%.
Gross profit margin jumped 80 basis points to 52%.
Full Year Guidance Raised
Very few companies are beating and raising this year in tough market conditions, but momentum from early in the year continued. It raised full year guidance for the second quarter in a row.
Earnings are now expected to be in the range of $0.87 to $0.97 up from its previous guidance of $0.81 to $0.91. Guidance is now up sharply from earlier in the year when the company was only looking for $0.73 to $0.83.