Nutrisystem Inc. reported lower income and sales for the second quarter Thursday, but the maker of weight-loss products sharply reduced marketing and overhead spending.
The results beat analysts' expectations. The company also raised its forecast of full-year earnings. Nutrisystem's shares jumped 68 cents, or 4.9 percent, to $14.50 in after-hours trading.
The company reported second-quarter income of $10.8 million, or 38 cents per share, down from $12.6 million, or 40 cents per share, a year ago.
Revenue fell to $116.1 million from $141.6 million a year earlier.
Analysts expected 28 cents per share on revenue of $117.4 million, according to FactSet.
The company said it expects to earn between 65 cents and 70 cents per share this year, up from the range of 55 cents to 65 cents it forecast three months ago. Analysts were expecting 61 cents per share.
Nutrisystem forecast third-quarter earnings of between 20 cents and 25 cents per share. Analysts were expecting 27 cents per share.
Chairman and CEO Joe Redling said the company had been worried about second-quarter revenue because of the weak economy and the way that the Easter holiday fell this year. He said the relatively late occurrence of Easter this year delayed the start of the spring diet season.
Redling said cost-cutting that began in the first quarter limited overhead, and the company was careful with its marketing spending. He said the company must still boost sales.
The company also announced a $150 million share-buyback program over the next two years and a quarterly dividend of 17.5 cents per share. The dividend is payable Aug. 18 to shareholders as of Aug. 8.