Why These Consumer Services Stocks Are in the Limelight
March 14 2013 - 8:00AM
Marketwired
Consumer services sector is finally looking up as it also witnesses
M&A activities. Zipcar Inc. (NASDAQ: ZIP) is all set to be
purchased by Avis Budget Group. The deal is likely to be finalized
in the coming quarter. The company also reported strong quarterly
result and the stock is currently trading near its acquisition
price of $12.25 a piece. NutriSystem Inc. (NASDAQ: NTRI), on the
other hand, took massive charges, leading to quarterly loss. The
company also made management changes and appointed a new CEO. It
also announced the departure of a couple of other top management.
Overall, the sector is showing good action, providing good returns
to the investors.
Access our free reports on NutriSystem Inc. and Zipcar Inc.
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research desk and market pros are standing between 8:50 am to 4:15
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http://www.ShinesRooms.com/ZIP031413.pdf
NutriSystem Inc. recently reported its fourth quarter results.
The company's net loss widened on account of higher charges. Its
revenue also declined 7 percent on year-over-year basis.
NutriSystem Inc. reported its net loss for the quarter at $5
million. It took $2.9 million worth of charges for terminating
third party contracts. It also recorded $2 million charges for
vacating a facility. On per share basis, its loss stood at 18 cents
per share, up from 4 cents per share in net loss it had reported
for the fourth quarter of the previous year.
NutriSystem's stock lost 22.79 percent of its value in the past
52 weeks. However, it is likely to make a comeback as the company
is restructuring its business. It recently appointed a new CEO,
Dawn Zier. The company is now looking to reduce its costs and
increase efficiencies to boost its bottom-line. It expects its
adjusted profit for the FY 2013 to be in the range of 23 to 33
cents per share. The stock is likely to take it as a positive
impetus and show good gains. However, for the first quarter, its
loss is expected to be between 3 to 8 cents per share.
Zipcar Inc. is currently in the process of being acquired by
Avis Budget Group. The deal has been approved by Zipcar's
shareholders. While the collaboration has already been approved by
the U.S. antitrust authorities, it is yet to be vetted by UK
competition authorities. The company stock has been valued at
$12.25 per share under this all cash deal. Zipcar offers its
vehicle rental services globally and it is operational in 175
countries. The company is also revamping its organizational ranks
as it appointed Brian Harrington as its new CMO and EVP.
Zipcar Inc. reported strong quarterly results as its GAAP net
income for the fourth quarter stood at $13.8 million, up from $3.9
million it had earned for the corresponding quarter of the last
year. The company's per share net income stood at 34 cents per
share. Its full year net profit was reported at $14.2 million. The
company had suffered $7.2 million in loss for the previous quarter.
Zipcar's stock is up 51.11 percent on YTD basis while its 52 weeks
loss stands at 12.51 percent.
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Zipcar, Inc. (MM) (NASDAQ:ZIP)
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