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Sales Leaders & Customers to Aid Nu Skin's (NUS) Q3 Earnings

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Nu Skin Enterprises, Inc. (NUS - Free Report) is slated to release third-quarter 2018 results on Nov 7, after market close. This Utah-based personal care products company has a mixed record of bottom-line surprises in the trailing four quarters. Let’s see how things are shaping up prior to the upcoming quarterly announcement.

Growth in Sales Leaders & Customers Bodes Well

A robust network of sales leaders and customers is a key element in Nu Skin’s success. Notably, the company’s top line has been consistently benefitting from growth in sales leaders. In fact, during the second quarter of 2018, sales leaders improved approximately 21%. This was preceded by a rise of 16% and 33% during the first quarter of 2018 and the fourth quarter of 2017, respectively.

The company is on track to empower sales leaders through improved compensation, training and technological enhancements. In this respect, the company successfully rolled out sales compensation program, Velocity, in the Pacific markets in December 2017. Further, in the second quarter, this program was introduced in Taiwan and North America. In July, the same was launched in the markets of Japan and Southeast Asia. Management expects Velocity to aid expanding the company’s business in the future.   

Moving on, Nu Skin takes pride in its expanding customer base, which boosts growth in sales leaders as well. Incidentally, the company’s customers grew approximately 8% during the second quarter. This was preceded by a rise of 7% in the first quarter of 2018 and a respective 8%, 7%, 5% and 2% during the fourth, the third, the second and the first quarters of 2017. The company relies much on social media as well as well-knit product and marketing programs to widen customer reach.

Lucrative Product Launches

Nu Skin frequently engages in innovation to ensure parity of offerings with the evolving beauty and wellness space. In this respect, the company relies on advanced technologies and well-strategized programs to introduce unique product concepts. Notably, the launch of the company’s revolutionary ageLOC LumiSpa is a success.

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

 

 

Strong Past Performance & Positive Expectations

Nu Skin’s top and bottom line have been improving year on year for the past three quarters. Such a stellar performance, combined with persistent growth in customers and sales leaders encouraged management to raise 2018 revenues and earnings projections, when it reported second-quarter results.  

Moreover, for third-quarter 2018, management anticipates revenues of $650-$670 million, including a 3% positive currency impact. This compares favorably with revenues of $563.7 million reported in the year-ago quarter. The Zacks Consensus Estimate for the top line for the impending quarter is currently pegged at $663.7 million.

Further, management expects earnings for the third quarter in the band of 93-98 cents per share, including charges of 4 cents stemming from purchase accounting. This depicts a substantial rise from earnings of 76 cents in the year-ago quarter. The Zacks Consensus Estimate for the bottom line for the upcoming quarterly announcement is currently pegged at 96 cents.

What the Zacks Model Unveils

To top it, our proven model shows that Nu Skin is likely to beat bottom-line estimates in the upcoming quarterly release. For this to happen, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter

Nu Skin’s Earnings ESP of +0.21% combined with a Zacks Rank #3 makes us reasonably confident regarding an earnings beat.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

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

Turning Point Brands, Inc (TPB - Free Report) has an Earnings ESP of +8.74% and a Zacks Rank #2.

The Hain Celestial Group, Inc (HAIN - Free Report) has an Earnings ESP of +5.66% and a Zacks Rank #3.

Monster Beverage Corporation (MNST - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #3.

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