Is a Disappointment in Store for Nu Skin (NUS) Q2 Earnings?

GIS EL NUS KHC

Nu Skin Enterprises, Inc. (NUS - Free Report) is scheduled to release second-quarter 2019 results on Aug 6. This cosmetics company’s earnings outperformed the Zacks Consensus Estimate by average of 7.1% in the trailing four quarters.

Let’s see what’s in store for the company this time around.

What to Expect?

The Zacks Consensus Estimate for second-quarter earnings, which has moved down in the past 30 days to 83 cents, suggests a 23.1% decline from the year-ago figure. The consensus mark for revenues is $633 million, implying a decline of 10.1% from the year-ago quarter’s reported figure.

Factors to Note

The 100-day government campaign in Mainland China to inspect offerings of direct selling industries and health products is likely to have adversely impacted Nu Skin’s performance in the second quarter. Constant media scrutiny and limitations on sales meetings have also hurt consumers’ sentiment, which in turn is likely to hurt the company’s performance. Moreover, adverse currency fluctuations have possibly been a threat.

Nevertheless, the company’s efforts to strengthen the customer base and network of sales leaders are likely to drive revenues. Nu Skin’s focus on its three key pillars — Products, Programs and Platform — also bodes well.

Management expects revenues for the second quarter to be $622-$623 million compared with $704 million recorded in the year-ago period. Earnings are envisioned to be 82-84 cents per share.

What the Zacks Model Unveils

Our proven model doesn’t show a beat for Nu Skin this earnings season. For this to happen, a stock needs to have both 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 has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell). We caution against sell-rated stocks going into the earnings announcement.

Stocks Poised to Beat Earnings Estimates

Estee Lauder (EL - Free Report) has an Earnings ESP of +2.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

General Mills (GIS - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2.

Kraft Heinz (KHC - Free Report) has an Earnings ESP of +8.00% and a Zacks Rank #3.

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