NutriSystem Plans to Launch a New Product Line after Surprise Loss

NutriSystem Inc NTRI recently announced its financial results and disappointed investors after posting bigger than expected losses for the quarter. The company reported the net loss of $1.2 million or loss of $0.04 per share for the quarter ended December 31st, 2011 as compared to net income of $7.1 million or earnings of $0.25 per share for the same period last year. Analysts were expecting the company to report the net loss of $0.02 per share with revenue of $65.3 million.

The company’s revenue also declined 24 percent to $66.9 million for the respective quarter. The company’s net profit for the year stood at $12.3 million or $0.43 per share as compared to $33.6 million or $1.12 per share in 2010. Total revenue for the year stood at $401.3 million as compared to revenue of $509.5 million in prior year.

The company has taken few measures after the surprise loss. The company plans to launch a new line of NutriSystem branded products which will be available in stores by mid 2012. It is expected that a reasonable boost will be seen in revenue of 2012 after the launch of new product line.

The company expects the earnings of $0.45 to $0.55 per share for 2012 while analysts are hoping for earnings of $0.92 per share.

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Alan Smalling

About Alan Smalling

Alan is the latest addition to our news and development team. He has worked with Pete previously on other financial websites. When we can keep him at low altitude, his contributions will mainly be focused on company news and new product launches.

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