NEW YORK, NY -- (Marketwire) -- 03/14/13 -- 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.
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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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