PHILADELPHIA — Weight loss company NutriSystem Inc. reported a 5 percent decline in third-quarter earnings on Wednesday as costs rose and competition increased.

The Horsham-based company posted a net income of $22.3 million, or 64 cents per share, compared with $23.4 million, or 63 cents, in the same quarter a year ago. NutriSystem had 6 percent fewer shares in the just-concluded quarter on a fully diluted basis.

Analysts polled by Thomson Financial expected earnings of 63 cents per share.

Revenue rose by 21 percent to $188.3 million, slightly above analysts' forecast.

GlaxoSmithKline's new diet drug, Alli, has been credited by analysts as hurting the profits of NutriSystem and other weight loss companies.

Looking ahead, NutriSystem said its fourth-quarter operating income will come in between $16 million and $19 million. Analysts were expecting $26.9 million.

Revenue in the fourth quarter will be flat from a year ago and the company expects a 20 percent decline in new customer additions.

By The Associated Press