Weight loss company NutriSystem Inc. offered profit guidance today for its fiscal second quarter and said it will incur charges related to cost-reduction efforts and an abandoned investment.
The Horsham-based company said it expects profit of 26 cents to 30 cents a share, including charges.
Analysts polled by Thomson Reuters expect profit of 44 cents a share, on average. Analyst estimates typically exclude charges.
The company said it will incur charges of about $1 million pretax in relation to layoffs and other cost-cutting objectives. The cost cuts are expected to lower pretax expenses by $5 million to $8 million in 2009.
NutriSystem said it is also abandoning an investment in ZeroWater, a brand of water filters. That move will require the company to take a charge of $3.6 million pretax in the second quarter to write off its remaining investment.
The company also said it has seen lower consumer spending in the first half of the year.