The Dividend Daily

Weight management company NutriSystem Inc. (NTRI) said late Tuesday that its third quarter profit fell from last year, but results were still enough to beat Wall Street’s expectations.

The Horsham, Pennsylvania-based company reported third quarter net income of $8.45 million, or 27 cents per share, compared with $13.53 million, or 43 cents per share, in the same quarter last year.

On average, Wall Street analysts expected a lower profit of 24 cents per share.

Revenue fell 22% from last year to $127 million, as cash-strapped consumers strayed from dieting programs amid the economic recession.

Looking ahead, the company forecast full-year earnings of 99 cents to $1.01 per share, while analysts expect $1 per share.

NutriSystem shares rose $2.09, or +11%, in morning trading Wednesday.

The Bottom Line
We began recommending shares of NTRI for aggressive investors back on Oct.14, when the stock was trading at $16.92. The company has a dividend yield of 3.70%, based on last night’s closing stock price of $18.93.

NutriSystem Inc. (NTRI) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.