Tivity Health stocks drops 33% on earnings miss, CEO departure
Tivity Health Inc. shares dropped in the extended session Wednesday after the Nutrisystem and South Beach Diet products company's results and outlook missed Wall Street estimates and its chief executive resigned. Tivity shares dropped 33% after hours, following a 0.3% rise in the regular session to close at $22.93. The company reported a fourth-quarter loss of $323.1 million, or $6.69 a share, compared with earnings of $28.5 million, or 67 cents a share, in the year-ago period. Adjusted earnings were 40 cents a share. Revenue rose to $272.8 million from $153 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 55 cents a share on revenue of $275.2 million. Tivity expects revenue of $335 million to $350 million for the first quarter, and $1.24 billion to $1.29 billion for the year. Analysts had forecast revenue of $369.8 million for the first quarter, and $1.34 billion for the year. Tivity said that Donato Tramuto resigned as chief executive and from the board and that board member Robert Greczyn will serve on an interim basis until a replacement can be found. Tivity also said Keira Krausz, the head of its nutrition business, which recorded a $377.1 million non-cash charge in the fourth quarter, resigned on Tuesday, and that Chief Operating Officer Tommy Lewis will head the business on an interim basis.