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Can Nutrisystem (NTRI) Surprise Investors in Q3 Earnings?
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Weight management products and service provider, Nutrisystem Inc. is scheduled to release third-quarter 2017 results on Oct 25.
Nutrisystem has an impressive track of beating estimates in all the four trailing quarters. Overall, the company’s record is favorable as evident from its four-quarter average positive surprise of 28.47%. Let’s see how things are shaping up prior to this quarter.
Factors at Play
Nutrisystem’s innovative products are expected to expand customer base that will eventually drive reactivation revenues, which is generated from existing customers after the first nine months of their purchase. However, a sluggish dieting market and intense competition are primary headwinds in the near term.
For the third quarter of 2017, management expects revenues in the range of $153 million to $158 million. The Zacks Consensus Estimate for the third quarter revenues is currently pegged at $155.0 million, up 24.4%. Meanwhile, adjusted EBITDA is anticipated in the range of $25.6 million to $27.6 million. Earnings per share are expected in the band of 42-47 cents per share.
On a positive note, the company portrays an impressive price performance. In the past three months, shares of Nutrisystem have returned 3.5% as against the industry’s decline of 0.3%.
However, overall activities of Nutrisystem during the third quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the to-be-reported quarter fell 2 cents to 45 cents per share in the last 90 days.
Earnings Whispers
Our proven model does not conclusively show that Nutrisystem is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Nutrisystem has an Earnings ESP of 0.00%. The Most Accurate estimate and the Zacks Consensus Estimate are pegged at 45 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nutrisystem currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Align Technology, Inc (ALGN - Free Report) has an Earnings ESP of +2.06% and carries a Zacks Rank #3.
Henry Schein, Inc (HSIC - Free Report) has an Earnings ESP of +0.33% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Can Nutrisystem (NTRI) Surprise Investors in Q3 Earnings?
Weight management products and service provider, Nutrisystem Inc. is scheduled to release third-quarter 2017 results on Oct 25.
Nutrisystem has an impressive track of beating estimates in all the four trailing quarters. Overall, the company’s record is favorable as evident from its four-quarter average positive surprise of 28.47%. Let’s see how things are shaping up prior to this quarter.
Factors at Play
Nutrisystem’s innovative products are expected to expand customer base that will eventually drive reactivation revenues, which is generated from existing customers after the first nine months of their purchase. However, a sluggish dieting market and intense competition are primary headwinds in the near term.
For the third quarter of 2017, management expects revenues in the range of $153 million to $158 million. The Zacks Consensus Estimate for the third quarter revenues is currently pegged at $155.0 million, up 24.4%. Meanwhile, adjusted EBITDA is anticipated in the range of $25.6 million to $27.6 million. Earnings per share are expected in the band of 42-47 cents per share.
On a positive note, the company portrays an impressive price performance. In the past three months, shares of Nutrisystem have returned 3.5% as against the industry’s decline of 0.3%.
However, overall activities of Nutrisystem during the third quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the to-be-reported quarter fell 2 cents to 45 cents per share in the last 90 days.
Earnings Whispers
Our proven model does not conclusively show that Nutrisystem is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Nutrisystem has an Earnings ESP of 0.00%. The Most Accurate estimate and the Zacks Consensus Estimate are pegged at 45 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nutrisystem currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Ranks #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
NutriSystem Inc Price and EPS Surprise
NutriSystem Inc Price and EPS Surprise | NutriSystem Inc Quote
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Abbott (ABT - Free Report) has an Earnings ESP of +0.17% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here..
Align Technology, Inc (ALGN - Free Report) has an Earnings ESP of +2.06% and carries a Zacks Rank #3.
Henry Schein, Inc (HSIC - Free Report) has an Earnings ESP of +0.33% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>