NutriSystem Inc. (NASDAQ:NTRI) reported on its latest figures today, sending shares plummeting after hours.
The company said that its net income for its fourth quarter came in at $10.9 million, or 36 cents a share, rising from the year-ago profit of 29 cents per share. NutriSystem’s quarter was lower than projected due to changes in the U.S. tax code that reduced the company’s profit by six cents per share.
Analysts were calling for fourth-quarter earnings of 30 cents per share, according to data compiled by FactSet. Revenue for the period came in at $131.2 million, a 20% improvement compared to the year-ago period, while also topping the $129 million that analysts were calling for, according to data compiled by FactSet.
For its fiscal year 2018, NutriSystem predicts that it will earn between $1.99 to $2.09 per share, well below the Wall Street consensus midpoint of $2.34 per share. The company is calling for revenue in the range of $685 million to $705 million, also missing the $791.6 million midpoint that FactSet is calling for.
“Our Nutrisystem brand had a slower than expected start to Diet Season as our campaign failed to generate more new customers versus last year,” CEO Dawn Zier admitted in Monday’s release. She added that she sees this issue “as a temporary and fixable setback and anticipate returning to meaningful growth in 2019.”
NTRI stock was sinking about 27.8% after the bell Monday on the earnings report.