NutriSystem Inc. (NTRI)

[NovoMira]

Fatten Up Your Portfolio With NutriSystem

Paul Rubillo and Tom Reese 10.28.09, 3:00 PM ET (Forbes.com)

NutriSystem's Third-Quarter Profit Beats View

Weight management company NutriSystem 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, Pa.-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 3.7%, based on Tuesday's closing stock price of $18.93.

NutriSystem is a "recommended" dividend stock, holding a Dividend.com rating of 3.5 out of five stars.