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Nutrisystem (NTRI) Q2 Earnings: What's in the Cards?
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Weight management products and service provider Nutrisystem Inc. is scheduled to release second-quarter 2016 results on Jul 27. In the last reported quarter, the company posted earnings of 13 cents per share, which beat the Zacks Consensus Estimate by six cents (85.7%).
On average, Nutrisystem outpaced the Zacks Consensus Estimate by 26.3% over the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Nutrisystem forecasts second-quarter 2016 revenues in the range of $145 million to $150 million. Adjusted EBITDA is expected in the band of $27.5 million to $29.5 million. Earnings are predicted in the range of 48 cents to 53 cents, including expense of 2 cents related to South Beach Diet and Shake360 initiatives.
Nutrisystem’s innovative products are anticipated to expand its customer base that will consequently drive reactivation revenues. However, a sluggish dieting market and intensifying competition will remain the primary headwinds in the near term.
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%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 51 cents per share.
Zacks Rank: Nutrisystem carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Nektar Therapeutics (NKTR - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #1.
Zoetis Inc. (ZTS - Free Report) with an Earnings ESP of +2.27% and a Zacks Rank #2.
Zimmer Biomet Holdings Inc. (ZBH - Free Report) with an Earnings ESP of +1.02% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Nutrisystem (NTRI) Q2 Earnings: What's in the Cards?
Weight management products and service provider Nutrisystem Inc. is scheduled to release second-quarter 2016 results on Jul 27. In the last reported quarter, the company posted earnings of 13 cents per share, which beat the Zacks Consensus Estimate by six cents (85.7%).
On average, Nutrisystem outpaced the Zacks Consensus Estimate by 26.3% over the trailing four quarters.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Nutrisystem forecasts second-quarter 2016 revenues in the range of $145 million to $150 million. Adjusted EBITDA is expected in the band of $27.5 million to $29.5 million. Earnings are predicted in the range of 48 cents to 53 cents, including expense of 2 cents related to South Beach Diet and Shake360 initiatives.
NUTRI/SYSTEM Price and EPS Surprise
NUTRI/SYSTEM Price and EPS Surprise | NUTRI/SYSTEM Quote
Nutrisystem’s innovative products are anticipated to expand its customer base that will consequently drive reactivation revenues. However, a sluggish dieting market and intensifying competition will remain the primary headwinds in the near term.
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%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 51 cents per share.
Zacks Rank: Nutrisystem carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Nektar Therapeutics (NKTR - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #1.
Zoetis Inc. (ZTS - Free Report) with an Earnings ESP of +2.27% and a Zacks Rank #2.
Zimmer Biomet Holdings Inc. (ZBH - Free Report) with an Earnings ESP of +1.02% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>