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Cosmetic Stocks' Earnings Slated on Aug 4: NUS, RDEN, CHD
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The Q2 earnings season is well past the halfway mark, so far having unveiled modest improvement compared to the last couple of quarters, and investors are still on the lookout for companies that can beat estimates. Per the latest Zacks Earnings Trends report as of Jul 29, out of the 317 S&P 500 members that have come up with their quarterly numbers, approximately 72.9% have posted positive earnings surprises, while 53.6% beat top-line expectations.
According to the report, earnings for the 317 S&P 500 companies that have reported so far are down 3.3% from the same period last year, while revenues have dropped 0.9%.
The report further projects that earnings for the total S&P 500 companies will decline 3.4% from the year-ago period, and total revenue will dip 0.4%. We observe that this reporting cycle is likely to be the fifth straight quarter, if the index witnesses a decline in earnings.
The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, 8 are expected to witness an earnings decline in Q2, with Basic Materials, Industrial Products, Oil/Energy, Aerospace, Finance and Transportation being a big drag. The Consumer Staples sector is also portraying a soft trend.
Total earnings for the Consumer Staples sector are expected to drop by 1.4%, whereas revenues are anticipated to remain flat. As of Friday, 51.6% of the total number of S&P 500 companies in this sector had reported their results, wherein 81.3% delivered an earnings beat and about 43.8% cruised ahead of revenue estimates. While earnings grew 2.2% year over year, revenues fell 1.7%. Cosmetic stocks form part of the Consumer Staples sector.
Among cosmetic stocks lined up to report, let’s take a sneak peek at two companies.
Nu Skin Enterprises Inc. (NUS - Free Report) , developer and distributor of anti-aging personal care products and nutritional supplements, is slated to report second-quarter 2016 results on Aug 4. Unfavorable currency has been a concern for Nu Skin’s revenues since quite some time. Last quarter, currency fluctuations negatively impacted sales by 5%. For the second quarter, revenues are expected in a range of $560 million to $580 million, assuming a negative foreign currency impact of approximately 4%. Earnings are projected in the band of 75–79 cents per share. In addition, multi-level marketer Nu Skin has been witnessing a decline in Greater China since the past few quarters. This is a concern as the company generates more than a third of its total revenue from the region, which includes Taiwan and Hong Kong. Nevertheless, Nu Skin plans to continue rolling out new products in the second half of the year. (Read: What's in Store for Nu Skin this Earnings Season?)
Our proven model does not conclusively show that Nu Skin Enterprises is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Nu Skin Enterprises has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 79 cents. The company carries a Zacks Rank #2, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. In the trailing four quarters, the company missed the Zacks Consensus Estimate by an average of 1%.
Another cosmetic stock, Elizabeth Arden, Inc. is expected to report fourth-quarter fiscal 2016 results on Aug 4. This beauty products company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter currently stands at a loss of 78 cents. In the trailing four quarters, the company underperformed the Zacks Consensus Estimate by an average of 52.6%.
Church & Dwight Co. Inc. (CHD - Free Report) , manufacturer and marketer of household, personal care, and specialty products, is slated to report second-quarter 2016 results on Aug 4. The company has an Earnings ESP of -1.27% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is currently pegged at 79 cents. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 2%.
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Cosmetic Stocks' Earnings Slated on Aug 4: NUS, RDEN, CHD
The Q2 earnings season is well past the halfway mark, so far having unveiled modest improvement compared to the last couple of quarters, and investors are still on the lookout for companies that can beat estimates. Per the latest Zacks Earnings Trends report as of Jul 29, out of the 317 S&P 500 members that have come up with their quarterly numbers, approximately 72.9% have posted positive earnings surprises, while 53.6% beat top-line expectations.
According to the report, earnings for the 317 S&P 500 companies that have reported so far are down 3.3% from the same period last year, while revenues have dropped 0.9%.
The report further projects that earnings for the total S&P 500 companies will decline 3.4% from the year-ago period, and total revenue will dip 0.4%. We observe that this reporting cycle is likely to be the fifth straight quarter, if the index witnesses a decline in earnings.
The performance of the index is not restricted to a single sector, and of the 16 Zacks sectors, 8 are expected to witness an earnings decline in Q2, with Basic Materials, Industrial Products, Oil/Energy, Aerospace, Finance and Transportation being a big drag. The Consumer Staples sector is also portraying a soft trend.
Total earnings for the Consumer Staples sector are expected to drop by 1.4%, whereas revenues are anticipated to remain flat. As of Friday, 51.6% of the total number of S&P 500 companies in this sector had reported their results, wherein 81.3% delivered an earnings beat and about 43.8% cruised ahead of revenue estimates. While earnings grew 2.2% year over year, revenues fell 1.7%. Cosmetic stocks form part of the Consumer Staples sector.
Among cosmetic stocks lined up to report, let’s take a sneak peek at two companies.
Nu Skin Enterprises Inc. (NUS - Free Report) , developer and distributor of anti-aging personal care products and nutritional supplements, is slated to report second-quarter 2016 results on Aug 4. Unfavorable currency has been a concern for Nu Skin’s revenues since quite some time. Last quarter, currency fluctuations negatively impacted sales by 5%. For the second quarter, revenues are expected in a range of $560 million to $580 million, assuming a negative foreign currency impact of approximately 4%. Earnings are projected in the band of 75–79 cents per share. In addition, multi-level marketer Nu Skin has been witnessing a decline in Greater China since the past few quarters. This is a concern as the company generates more than a third of its total revenue from the region, which includes Taiwan and Hong Kong. Nevertheless, Nu Skin plans to continue rolling out new products in the second half of the year. (Read: What's in Store for Nu Skin this Earnings Season?)
NU SKIN ENTERP Price, Consensus and EPS Surprise
NU SKIN ENTERP Price, Consensus and EPS Surprise | NU SKIN ENTERP Quote
Our proven model does not conclusively show that Nu Skin Enterprises is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Nu Skin Enterprises has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at 79 cents. The company carries a Zacks Rank #2, which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult. In the trailing four quarters, the company missed the Zacks Consensus Estimate by an average of 1%.
Another cosmetic stock, Elizabeth Arden, Inc. is expected to report fourth-quarter fiscal 2016 results on Aug 4. This beauty products company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter currently stands at a loss of 78 cents. In the trailing four quarters, the company underperformed the Zacks Consensus Estimate by an average of 52.6%.
ELIZABETH ARDEN Price, Consensus and EPS Surprise
ELIZABETH ARDEN Price, Consensus and EPS Surprise | ELIZABETH ARDEN Quote
Church & Dwight Co. Inc. (CHD - Free Report) , manufacturer and marketer of household, personal care, and specialty products, is slated to report second-quarter 2016 results on Aug 4. The company has an Earnings ESP of -1.27% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is currently pegged at 79 cents. In the trailing four quarters, the company outperformed the Zacks Consensus Estimate by an average of 2%.
CHURCH & DWIGHT Price, Consensus and EPS Surprise
CHURCH & DWIGHT Price, Consensus and EPS Surprise | CHURCH & DWIGHT Quote
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