Earnings Preview: Nutrisystem, Inc. (NTRI)

Nutrisystem, Inc. NTRI is currently lower on the session by 2.09%, trading at $18.72. The company is scheduled to report earnings today, after the closing bell. • Estimates The Street is looking for Q3 earnings per share of $0.25 on revenue of $123.82 million. These estimates have fallen by $0.09 (-26.47%) over the past 90 days. The Whisper number for NTRI is $0.25. • Guidance The Street is looking for Q4 EPS of $0.26 on revenue of $105.10 million. The full year 2010 estimates are $1.08 per share on revenue of $529.98 million; FY 2011 is at $1.33 per share on revenues of $556.01 million. • Technical Picture NTRI has been trending higher over the past eight months following a steep slide in January and February. In May and June, NTRI struggled at the $25.00 level and sold off once again. They have since rebounded some, though are still bound by the 200-day moving average to the topside and the 50-day moving average from the bottom side. • Volatility Both historical volatility and implied volatility have been falling for the past few months, following a spike higher in May. Currently HI is at 34% and IV is at 51%. The front month $19.00 straddle is trading at 61.07%; the December $19.00 straddle is trading at 49.37%. Vol is skewed toward the puts in both months. Nutrisystem, Inc. is a provider of a weight management system based on a low-calorie, portion-controlled, prepared meal program. The customers purchase monthly food packages containing a 28-day supply of breakfasts, lunches, dinners and desserts, which they supplement with fresh dairy, fruit, salad, vegetables and low-glycemic carbohydrate items.