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Can Nu Skin (NUS) Spring a Surprise This Earnings Season?

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Nu Skin Enterprises, Inc. (NUS - Free Report) is all set to report first-quarter 2017 results on May 3, after the closing bell. The question lingering in investors’ minds is, whether this leading beauty company will be able to post a positive earnings surprise in the to-be-reported quarter.

Last quarter, it delivered negative earnings surprise of 1.25%. However, the company’s earnings have outpaced the Zacks Consensus Estimate in two of the trailing four quarters, with an average beat of 10.7%.

We note that Nu Skin has exhibited a bullish run in the past year. Evidently, its shares outperformed both the Zacks categorized Cosmetics & Toiletries industry and the broader sector. The stock increased 40.3%, against the industry’s fall of 23.6%. Moreover, the Zacks categorized Consumer Staples sector, of which they are part of, rose 4.2% over the same time frame.



Let’s delve deeper how things are shaping up for this announcement.

What Does the Zacks Model Unveil?

Our proven model does not conclusively show earnings beat for Nu Skin this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Nu Skin has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 49 cents. Although the company’s Zacks Rank #2 increases the predictive power of ESP, we need a positive Earnings ESP in order to be confident about an earnings surprise.

Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise

Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise | Nu Skin Enterprises, Inc. Quote

Factors at Play

Estimates have been stable ahead of the company’s first-quarter earnings release. The Zacks Consensus Estimate for the said quarter is pegged at 49 cents within the company’s guidance range of 47–51 cents, issued in February during fourth-quarter 2016 conference call.

In fact, analysts polled by Zacks expect revenues of $503.3 million for the first quarter, up 6.7% from the year-ago quarter. This also marginally exceeds the revenues anticipated in the band of $480–$500 million.

Notably, Nu Skin remains on track with its initiatives and product launches that will help it to boost sales and expand customer base. Also, the company remains optimistic about its growth on the back of its management transition. Further, the company remains encouraged about ageLOC Me and ageLOC Youth products, and launch of LumiSpa product in October.

However, currency headwind remains a major concern for the company, which is expected to hurt first-quarter revenues in the 1–2% range, going forward.

Stocks Poised to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

Energizer Holdings, Inc. (ENR - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Newell Brands Inc. (NWL - Free Report) has an Earnings ESP of +6.90% and a Zacks Rank #3.

Spectrum Brands Holdings, Inc. (SPB - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3.

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