24/7 Wall St. » NTRI

America’s Best (and Worst) Online Retailers

Douglas A. McIntyre — Thu, 27 Dec 2012 05:01:39 +0000

As a larger and larger portion of retail sales in the U.S. move online, customer service has become essential to e-commerce businesses that want to attract shoppers and keep them. E-commerce also has become critical to the profits of brick-and-mortar operations like Wal-Mart Stores Inc. (NYSE: WMT) and Best Buy Co. Inc. (NYSE: BBY). Research firm comScore reports that from the start of November through December 21, e-commerce sales reached $38.7 billion — up 16% from the same period in 2011. Very few retailers can ignore the growth in online shopping and the need for the e-commerce customer to believe he or she is being treated well.

Click here to see America’s best online retailers

Click here to see America’s worst online retailers

Research company ForeSee recently released its “E-Retail Satisfaction Index (U.S. Holiday Edition),” which is based on more than 24,000 customer surveys conducted between Thanksgiving and Christmas. The companies covered by the study are 100 of the largest online retailers based on revenue. On a 100-point scale, the average retailer in the survey scored a 78. The benchmark against which all other e-tailers should be measured is Amazon.com Inc. (NASDAQ: AMZN), which also happens to be the largest e-commerce company in the world. ForeSee reports that Amazon’s 88 rating this year is “the highest score ever attained by any retailer measured in the holiday Index since 2005.” It is not clear whether Amazon is large because its customer service is so excellent, or whether its customer service is excellent because it is so large.

Some of the retailers included in the study have sales presences outside the internet — unlike Amazon. A number have brick-and-mortar or catalogue businesses, so online sales are only a portion of their total revenue. And, for some large retailers, their online sales efforts are still in the infancy. As measured by comScore, Walmart has the second most visited e-commerce site in America after Amazon. But online sales are only 2% of Walmart’s U.S. revenue. Online revenue may be important to the future of large retailers, but e-commerce results are not crucial now. L.L.Bean ranks second on the Foresee satisfaction list, but it has physical stores in 10 states. Crate & Barrel is very near the bottom of the Foresee ratings, and it has more than 100 stores. Online-only retailers obviously have more riding on online customer service than retailers that operate stores or catalogues.

One final observation worth making is that the number of visitors an e-commerce site has does not appear to be related to its customer service rating. Companies appear to hold their own fates based on their retail practices and not their visitor count. Amazon.com is among the top sites for customer satisfaction, with 119.8 million unique visitors last month. 1800Contacts.com is also among the top-rated sites and had only 489,000 unique visitors.

24/7 Wall St. began its analysis with Foresee’s rankings, which are based on grades for content, website functionality, price and merchandise. We added the number of visitors to each website based on research firm Compete’s data and then provided analysis about what each company sells online and how e-commerce is related to the balance of its operations.

These are the 24/7 Wall St. Best (and Worst) Online Retailers.

Filed under: 24/7 Wall St. Wire, Research, Retail, Special Report Tagged: AAPL, AMZN, BBY, EL, featured, GMCR, LINTA, NTRI, PCCC, SBUX, SCHL, UNTD, WMT

Sears, Overstock, And Gilt Hammered In New E-Commerce Study

Douglas A. McIntyre — Wed, 09 May 2012 15:12:08 +0000

Sears (NASDAQ: SHLD), Overstock (NASDAQ: OSTK), and Abercrombie & Fitch (NYSE: ANF) are not particularly well-regarded as brands or particularly well-liked by Wall St. Perhaps coincidentally, each shows up near the bottom of the e-retailer satisfaction list published by research firm Foresee. All are in the bottom 15% of the 100 companies rated.

The FORESEE E-RETAIL SATISFACTION INDEX (SPRING TOP 100 EDITION 2012) is the result of approximately 21,000 responses from visitors to the top 100 retail sites. The data posts year-over-year comparisons of both industry average satisfaction and satisfaction with individual retailers.

The bottom ten sites in the survey, based on a total best score of 100 were:

Nutrisystem.com (NASDAQ: NTRI) 74

PCConnection.com 74

PCMall.com 754

Safeway.com (NYSE: SWY) 74

Abercrombie.com   73

Build.com 73

Gilt.com 71

Peapod.com 70

Ancestry.com (NASDAQ: ACOM) 69

efollett.com 69

The presence of Gilt at the bottom is somewhat of a surprise given that it caters to high end customers.

At the top of the list, are several companies which would be expected. The first among them is the world’s largest e-commerce company–Amazon (NASDAQ: AMZN). Fortunately for Barnes & Noble (NYSE: BKS) which is in a battle with Amazon in the e-reader business, its site scored well. The company recently took an investment from Microsoft (NASDAQ: MSFT) to expand its Nook e-reader division. Apple (NASDAQ: AAPL), which is generally well-regarded for customer service across its online and bricks and mortar retail operations, also did well. The one surprise on the list is Avon (NYSE: AVP), which has struggled with its image.

Amazon.com 89

QVC.com 85

Store.Apple.com 85

Keurig.com 84

Avon.com   83

LLBean.com 83

1800Contacts.com 82

BN.com 82

Newegg.com 82

Douglas A. McIntyre

Filed under: Analyst Calls, Research, Retail Tagged: AAPL, ACOM, AMZN, ANF, AVP, BKS, featured, MSFT, NTRI, OSTK, SHLD, SWY

Big After-Hours Stocks On The Move (AEO, DNDN, FIO, HNSN, MELI, NTRI, QCOM, RLD, VVTV, WFM)

Jon C. Ogg — Wed, 02 Nov 2011 21:12:19 +0000

There are many movers and shakers in the after-hours session. We have provided a news summary and the after-hours moves for the following: American Eagle Outfitters, Inc. (NYSE: AEO); Dendreon Corporation (NASDAQ: DNDN); Fusion-io, Inc. (NYSE: FIO); Hansen Medical, Inc. (NASDAQ: HNSN); MercadoLibre, Inc. (NASDAQ: MELI); NutriSystem Inc. (NASDAQ: NTRI); QUALCOMM Incorporated (NASDAQ: QCOM); RealD INc. (NYSE: RLD); ValueVision Media, Inc. (NASDAQ: VVTV); and Whole Foods Market, Inc. (NASDAQ: WFM).

American Eagle Outfitters, Inc. (NYSE: AEO) lives and dies by guidance around same-store sales. Shares are surging on a report of third quarter sales rising 11% and the stock is up 6.5% at $14.15 in the after-hours session.

Dendreon Corporation (NASDAQ: DNDN) has changed its name to better reflect its stock ticker: “Do Not Do Not!”… shares closed down 1.7% at $10.46 but Provenge sales were only $66 million. Shares are down over 11.5% from the close at $9.25 in active trading.

Fusion-io, Inc. (NYSE: FIO) was up 6% already and the recent IPO beat estimates. Shares are up a sharp 12.6% more at $36.05 on more than 100,000 shares in the after-hours session.

Hansen Medical, Inc. (NASDAQ: HNSN) was up ahead of earnings on the same hope of Intuitive Surgical. It didn’t happen… Third quarter total revenue was $5.4 million, up 53% year over year and 1% sequentially. Shares are down 17.2% to $2.60 in the after-hours.

MercadoLibre, Inc. (NASDAQ: MELI) is surging after closing up more than 1%. It reported that Q3 gross merchandise volume rose 51.8% to $1.3 billion, items sold rose 38.1% to 14.4 million; and revenue rose 45.9% to $81.6 million. This ADR is up 17% at $74.17 in active trading after the close.

NutriSystem Inc. (NASDAQ: NTRI) reported that revenues were $85.6 million versus $121.2 million a year ago. Shares are down almost 16% at $10.10 on well over 100,000 shares in the after-hours.

QUALCOMM Incorporated (NASDAQ: QCOM) rose 4% to $52.18 ahead of earnings and beating earnings and bringing guidance is worth a gain of another 9.1% to $56.99 on highly active trading.

RealD Inc. (NYSE: RLD) showed a 35% revenue gain and was said to beat estimates but something awful must have been said in its conference call. Shares closed up 9.5% at $11.26 but the stock is now down 13.3% at $9.76 in the after-hours.

ValueVision Media, Inc. (NASDAQ: VVTV) reported Q3 estimates of sales growth of 2% to $135 million and an adjusted EBITDA loss of $0.5M to$0.7M; Shares closed up 7% at $3.27 but the stock is down almost 15% from the close at $2.79 on more than 27,000 shares.

Whole Foods Market, Inc. (NASDAQ: WFM) was up ahead of earnings, but the company missed revenues. Raising the dividend and a 31% income pop just aren’t enough for a high-valued luxury grocery store. Shares are down 5% at $67.50 in active trading in the evening session. $ 66.22 4.34 6.15% 582,256

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JON C. OGG

Filed under: Active Trader, After-Hours Activity, Trading Alert Tagged: AEO, DNDN, FIO, HNSN, MELI, NTRI, QCOM, RLD, VVTV, WFM

Top Analyst Upgrades & Downgrades (AAPL, CAT, CHTR, CL, CMCSA, CMA, DE, DTV, IFT, KMB, LRCX, MW, NVLS, NTRI, RL, TEVA, PAY, WCRX)

Jon C. Ogg — Wed, 28 Sep 2011 12:17:59 +0000

These are some of this Wednesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

Apple Inc. (NASDAQ: AAPL) Started as Buy with $495 target at Janney.
Caterpillar Inc. (NYSE: CAT) Started as Overweight at Barclays.
Charter Communications Inc. (NASDAQ: CHTR) Started as Overweight at JPMorgan.
Colgate-Palmolive Co. (NYSE: CL) Cut to Hold at Citigroup.
Comcast Corporation (NASDAQ: CMCSA) Started as Overweight at JPMorgan.
Comerica Incorporated (NYSE: CMA) Raised to Market Perform at Wells Fargo.
Deere & Co. (NYSE: DE) Started as Overweight at Barclays.
DIRECTV (NASDAQ: DTV) Started as Overweight at JPMorgan.
Imperial Holdings, LLC (NYSE: IFT) Cut to Market Perform at FBR.
Kimberly-Clark Corporation (NYSE: KMB) Cut to Hold at Citigroup.
Lam Research Corporation (NASDAQ: LRCX) Started as Overweight at JPMorgan.
Men’s Wearhouse Inc. (NYSE: MW) named value stock of the day at Zacks.
Novellus Systems, Inc. (NASDAQ: NVLS) Started as Overweight at JPMorgan.
NutriSystem Inc. (NASDAQ: NTRI) Started as Buy at Auriga.
Polo Ralph Lauren Corp. (NYSE: RL) Cut to Hold at Citigroup.
Teva Pharmaceutical Industries Limited (NASDAQ: TEVA) Started as Buy at Canaccord Genuity.
VeriFone Systems, Inc (NYSE: PAY) Started as Buy at Argus.
Warner Chilcott plc (NASDAQ: WCRX) Started as Buy at Canaccord Genuity.

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JON C. OGG

Filed under: Analyst Calls Tagged: AAPL, CAT, CHTR, CL, CMA, CMCSA, DE, DTV, IFT, KMB, LRCX, MW, NTRI, NVLS, PAY, RL, TEVA, WCRX

Short Seller Swarm: Highest Days To Cover (CADX, DMND, TSLA, OMEX, PACR, MNKD, WAVX, ENER, NTRI, ZIXI, MR, ZZ, RCI, MNI, HGG, AM, BPI, LTM)

Jon C. Ogg — Tue, 27 Sep 2011 15:13:51 +0000

Many investors track the largest increase in short selling, but there is another crucial way to look at short interest: the days to cover often tells just how actively shorted a stock is, as does a large percentage of its float. More importantly, these often represent a longer-term bias by the trading community. We have tracked the NASDAQ and NYSE short interest data today to screen for companies with the highest days to cover ratios (all are over one months of trading volume). We also looked for a high percentage of its shares outstanding or its float to be in the short interest. Almost all of these also had an increase in the period from August 31 to September 15 settlement dates.

The NASDAQ stocks which fit this bill are as follows: Cadence Pharmaceuticals, Inc. (NASDAQ: CADX); Diamond Foods, Inc. (NASDAQ: DMND); Tesla Motors, Inc. (NASDAQ: TSLA); Odyssey Marine Exploration, Inc. (NASDAQ: OMEX); Pacer International, Inc. (NASDAQ: PACR); MannKind Corporation (NASDAQ: MNKD); Wave Systems Corporation (NASDAQ: WAVX); Energy Conversion Devices, Inc. (NASDAQ: ENER); NutriSystem Inc. (NASDAQ: NTRI); and Zix Corporation (NASDAQ: ZIXI).

The NYSE stocks which fit this bill, except for one, are as follows: Mindray Medical International (NYSE: MR); Sealy Corporation (NYSE: ZZ); Rogers Communication, Inc. (NYSE: RCI); The McClatchy Company (NYSE: MNI); HHGregg, Inc. (NYSE: HGG); American Greetings Corporation (NYSE: AM); Bridgepoint Education, Inc. (NYSE: BPI); and Life Time Fitness (NYSE: LTM).

We only looked at companies with an average volume of more than 250,000 shares and have added some loose color on these if applicable.

Filed under: Active Trader, Short Interest, Trading Alert Tagged: AM, BPI, CADX, DMND, ENER, HGG, LTM, MNI, MNKD, MR, NTRI, OMEX, PACR, RCI, TSLA, WAVX, ZIXI, ZZ

Top Active Trader Alert Stocks (BP, CGNX, CCUR, OFC, ESLR, MPEL, WFR, MVIS, NTRI, TEAM)

Jon C. Ogg — Tue, 02 Nov 2010 12:44:05 +0000

Active traders and day traders have many stocks to choose from this Tuesday morning. We are tracking news and moves in shares of BP plc (NYSE: BP), Cognex Corp. (NASDAQ: CGNX), Concurrent Computer Corporation (NASDAQ: CCUR), Corporate Office Properties Trust (NYSE: OFC), Evergreen Solar Inc. (NASDAQ: ESLR), Melco Crown Entertainment Ltd. (NASDAQ: MPEL), MEMC Electronic Materials Inc. (NYSE: WFR), Microvision Inc. (NASDAQ: MVIS), NutriSystem Inc. (NASDAQ: NTRI), and TechTeam Global, Inc. (NASDAQ: TEAM).

BP plc (NYSE: BP) is trading higher after the troubled oil giant returned to a profit, even if its well costs remain an open-ended issue. Shares are indicated up around $41.30 after a $40.70 close.

Cognex Corp. (NASDAQ: CGNX) beat earnings estimates after net income tripled and after guiding quarterly revenues ahead of estimates. Shares are trading up 6.5% at $28.40 at a new 52-week high above $27.99.

Concurrent Computer Corporation (NASDAQ: CCUR) is lower after posting an unexpected loss for the quarter. Shares closed at $6.90 and shares are down 28% at $4.96.

Corporate Office Properties Trust (NYSE: OFC) is lower this morning after announcing a 6.5 million shares secondary offering. Shares are indicated down about 4% just under $34.50 after a $35.87 close and against a 52-week range of $31.77 to $43.61.

Evergreen Solar Inc. (NASDAQ: ESLR) had a narrower loss than before but was light on estimates; shares are indicated down 7% at $0.89 this morning.

Melco Crown Entertainment Ltd. (NASDAQ: MPEL) is hitting 52-week highs up over 7% at $7.00 after beating earnings with a surprise profit.

MEMC Electronic Materials Inc. (NYSE: WFR) missed Q3 earnings estimates and withdrew offering guidance. Shares were down over 10% last night in the after-hours session, but now shares are down ‘only’ about 3% around $12.30 in active trading.

Microvision Inc. (NASDAQ: MVIS) is down 14% at $1.72 after posting a wider than expected loss yesterday after the close. Volume is thin, but this marks a 52-week low as the prior 52-week trading range was $1.91 to $4.11.

NutriSystem Inc. (NASDAQ: NTRI) rose approximately 7% last night after beating earnings despite revenues being a tad light. This morning shares are trading up 5.6% at $19.85 in thin pre-market trading.

TechTeam Global, Inc. (NASDAQ: TEAM) is merging with a Stefanini IT Solutions affiliate for $8.35 per share; shares are trading up 16% at $8.30 on very thin trading volume.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Active Trader, Pre-Market Activity, Trading Alert Tagged: BP, CCUR, CGNX, ESLR, MPEL, MVIS, NTRI, OFC, TEAM, WFR

Top Day Trader Alerts (BZH, BHP, BP, GGP, IPXL, LF, NTRI, PBI, PWAV, QCOR, SIRI)

Jon C. Ogg — Tue, 04 May 2010 12:51:30 +0000

There are many pre-market movers this morning, and most are still from earnings but not all… Those on the move this morning include Beazer Homes USA, Inc. (NYSE: BZH), BHP Billiton Ltd. (NYSE: BHP), BP plc (NYSE: BP), General Growth Properties Inc. (NYSE: GGP), Impax Laboratories, Inc. (NASDAQ: IPXL), Leapfrog Enterprises Inc. (NYSE: LF), NutriSystem Inc. (NASDAQ: NTRI), Pitney Bowes Inc. (NYSE: PBI), Powerwave Technologies Inc. (NASDAQ: PWAV), Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR), and SIRIUS XM Radio Inc. (NASDAQ: SIRI). We have included the news summaries, after-hours moves, and other analysis where applicable.

Beazer Homes USA, Inc. (NYSE: BZH) said earnings were helped out on a note exchange gain; orders were up 49% and its cancellations fell; but the real issue is a secondary offering: a 12.5 million share secondary offering along with 3.5 million tangible equity units and $300 million aggregate principal in unsecured notes due in 2018. Shares were down 5.5% last night on last look and the stock was down 6.7% at $6.42 on about 35,000 shares.

BHP Billiton Ltd. (NYSE: BHP) is getting clipped again on a day-two move after the Australians decided to propose a new tax specifically on miners. ADR shares were down $1.35 at $71.44 yesterday, and shares are indicated down 1.8% at $70.17 pre-market this morning on almost 50,000 shares.

BP plc (NYSE: BP) was down again yesterday and on volume not seen in ages of 156 million shares. Some may be hoping that yesterday’s $1.96 drop to $50.19 was the capitulation as this was a $60 stock on April 21. Shares are indicated up 0.8% at $50.58 on about 1 million shares in pre-market trading.

General Growth Properties Inc. (NYSE: GGP) is up only marginally, but that may be because of its rally very late Monday. Shares appear up 0.1% at $16.80 on thin volume despite the bid being listed as $18.25 per share.

Impax Laboratories, Inc. (NASDAQ: IPXL) is having a solid morning. Shares closed at $17.96 but this morning the stock is up 8.5% at $19.50 on over 75,000 shares. This is on strong first quarter revenue on generic Flomax launch, and anything above $18.74 is to be considered a new 52-week high today.

Leapfrog Enterprises Inc. (NYSE: LF) was down last night despite a sales gain of more than 40% because it lost $23 million in its latest quarter. Shares were down 18% last night, but this morning the stock is down 15.7% at $6.00 on about 25,000 shares.

NutriSystem Inc. (NASDAQ: NTRI) caught the bears looking in the diet food… It beat earnings last night and we have now seen at least one analyst upgrade. Shares were trading up 9.9% at $20.34 last night, but now shares are indicated up 16% at $21.53 on volume approaching 100,000 shares.

Pitney Bowes Inc. (NYSE: PBI) is down after reported $0.55 EPS vs. $0.54 estimates; revenue fell 2% To $1.35 billion rather than $1.377 billion expected from Thomson Reuters. It also reaffirmed a range of $2.30 to $2.50 EPS vs. the $2.40 estimates. Shares were down over 7% at $24.00 on last look in the evening, but PBI is down “only 5.3%” at $24.50 on thin volume.

Powerwave Technologies Inc. (NASDAQ: PWAV) originally fell last night after it reported -$0.05 EPS vs. $0.00 estimates from Thomson Reuters and revenues were down over 20% to $114.5 million versus estimates of $130+ million. Now shares are up over 12% at $2.02 on about 600,000 shares of stock. The old 52-week high was $1.91.

Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) closed down 5% at $9.28 yesterday and the after-hours session has shares down 3% at $9.00 when we looked. This morning the stock is off by 8.8%and down to $8.46 ahead of next week’s FDA panel. Volume is rather thin.

SIRIUS XM Radio Inc. (NASDAQ: SIRI) was up earlier this morning after it posted $157.8 million in adjusted operating income and backed approximately $550 million in pro forma adjusted income for 2010. Revenues were $670 million. Shares were indicated up about 1% at $1.24+ this morning versus the $1.25 52-week high yesterday. Now that earnings are digested, the SIRIUS is down a serious 6.5% at $1.15 on over 6 million shares.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Sponsor: 5 best investments for 2010 – The next nine months represent a bold new era for investors.

Filed under: Active Trader, Earnings, Pre-Market Activity, Trading Alert Tagged: BHP, BP, BZH, GGP, IPXL, LF, NTRI, PBI, PWAV, QCOR, SIRI

Top Analyst Upgrades and Downgrades (MT, BLK, BCSI, HAS, LOGI, NBG, NTRI, CRM, SAPE, SON, SYK)

Jon C. Ogg — Tue, 04 May 2010 12:12:57 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this morning:

ArcelorMittal (NYSE: MT) Raised to Buy at ING.
BlackRock, Inc. (NYSE: BLK) Started as Buy at Stern Agee.
Blue Coat Systems Inc. (NASDAQ: BCSI) Started as Outperform at Wells Fargo.
Hasbro Inc. (NYSE: HAS) Started as Conviction Buy at Goldman Sachs.
Logitech International SA (NASDAQ: LOGI) Raised to Hold at RBS.
National Bank of Greece SA (NYSE: NBG) Cut to Market Perform at KBW.
NutriSystem Inc. (NASDAQ: NTRI) Raised to Buy at Lazard.
Salesforce.com (NYSE: CRM) Raised to Buy at Goldman Sachs.
Sapient Corp. (NASDAQ: SAPE) Raised to Conviction Buy List at Goldman Sachs.
Sonoco Products Co. (NYSE: SON) Started as Outperform at Oppenheimer.
Stryker Corporation (NYSE: SYK) Raised to Outperform at Bernstein.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: BCSI, BLK, CRM, HAS, LOGI, MT, NBG, NTRI, SAPE, SON, SYK

Top 10 Analyst Upgrades, Downgrades, Initiations (AAPL, GOOG, CME, FFIV, HOG, ICE, NDAQ, NTRI, SGMS, URBN)

Douglas A. McIntyre — Fri, 16 Oct 2009 12:12:14 +0000

These are the top ten stocks seeing analyst upgrades, downgrades, and initiations from Wall Street early this Friday morning:

Apple Inc. (NASDAQ: AAPL) was given a cautious call from Oppenheimer, noting that it could report in-line or even slightly disappointing revenues of $9 to $9.2 billion.   Google Inc. (NASDAQ: GOOG): Stifel Nicolaus raised target to $650; UBS raised target to $635; JPMorgan raised target to $608; Goldman Sachs raised target to $635; BofA raised target to $640; Citi raised target to $640.

CME Group (NYSE: CME) Raised to Outperform at KBW.
F5 Networks (NASDAQ: FFIV) Cut to Perform at Oppenheimer.
Harley-Davidson (NYSE: HOG) Raised to Outperform at RBC.
Intercontinental Exchange (NYSE: ICE) Raised to Outperform at KBW.
NASDAQ (NASDAQ: NDAQ) Cut to Market Perform at KBW.
NutriSystem (NASDAQ: NTRI) Raised to Buy at Janney Montgomery
Scientific Games (NASDAQ: SGMS) Cut to Neutral at JP Morgan.
Urban Outfitters (NASDAQ: URBN) Started as Buy at BofA/Merrill Lynch.

You can join our open email distribution list to get updates on top analyst upgrades and downgrades, top day trader alerts, IPO’s, secondary offerings, Warren Buffett and other guru activity, M&A and more.

JON C. OGG
OCTOBER 16, 2009

Posted in Analyst Calls Tagged: AAPL, CME, FFIV, GOOG, HOG, ICE, NDAQ, NTRI, SGMS, URBN

24/7 Wall St. TV: NutriSystem Gets Into Wal-Mart

Douglas A. McIntyre — Tue, 06 Oct 2009 14:27:21 +0000

Nutrisystem, Inc. (NASDAQ: NTRI) announced that has aligned with Wal-Mart Stores Inc. (NYSE: WMT) to allow customers to purchase a Nutrisystem 14-Day Starter Program for the first time in the retail channel. This will begin rolling out nationwide at over 3,200 Wal-Mart locations in the first week of October and will also be available on the Walmart.com website. There is a catch to this deal on what it means, but so far we are seeing a very positive reaction in shares.

The Nutrisystem weight loss starter program will be available in the pharmacy area of the local stores. A card system will be activated to begin home delivery thereafter. This offer will sell for $148.00.

This is not a full roll-out at Wal-Mart for the full Nutrisystem plan, at least not yet. Much will depend on how this sells and how much of if it cuts into the company’s sales. With this being in the pharmacy area, you know what the target group is. Shares went up 16% to $17.59 in the after-hours session.

Nutrisystem has been fighting declining revenues. Last year (2008) revenues were listed as $687.74 million, down from $776.76 million a year earlier. And unless this can change the full expectations, we show that Thomson Reuters is only looking for $508 million in fiscal 2009 sales and $479.5 million in 2010 revenues.

For this to grossly alter estimates from analysts, it seems that the Wal-Mart deal would need to become a full distribution pact. The problem there becomes that if people are shopping for Nutrisystem at Wal-Mart and buying other food, then the glycemic diet won’t necessarily hold up and therefore won’t necessarily show any significant results if not strictly followed.

Still, this is a far cry from bad news and traders are bidding Nutrisystem up.

For more 24/7 Wall St. TV visit us here.

Executive Producer: Philip MacDonald

Posted in Media, Retail, TV Tagged: NTRI, WMT