We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nu Skin (NUS) Q2 Earnings Beat Estimates, Sales Grow Y/Y
Read MoreHide Full Article
Nu Skin Enterprises, Inc. (NUS - Free Report) delivered impressive second-quarter 2021 results, with the top and the bottom line beating the Zacks Consensus Estimate as well as increasing year over year. Management raised 2021 earnings view.
Results gained from continued strength in its beauty device systems as well as further adoption of social commerce. The company is encouraged by its recent innovative device system, ageLOC Boost, which saw solid momentum with the EMEA launch. Management is also impressed with the rollout of Nutricentials Bioadaptives. The company plans to roll out Beauty Focus Collagen+ and ageLOC Meta in the second half of the year.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin reported quarterly earnings of $1.15 a share, which beat the Zacks Consensus Estimate of $1.06 per share. The metric surged 42% from 81 cents reported in the year-ago quarter. The upside can be attributed to solid gross margin and operating margin. Effective cost-control measures and supply chain efficiency are also driving growth.
Revenues of $704.1 million rallied 15% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate of $702.6 million. Revenues included a positive impact of 6% from foreign-currency fluctuations. On a constant-currency (cc) basis, revenues increased 9%. The upside can be attributed to increase in sales leaders.
Sales leaders were up 15% year over year to 64,228 on the back of new product introductions and better leader qualification programs. Nu Skin’s customer base dropped 2% to 1,467,617. The company highlighted that the downside was caused by massive surge in the year-ago quarter.
Gross profit of $532.1 million increased from $458.3 million reported in the year-ago quarter. Gross margin expanded year over year from 74.8% to 75.6% on the back of favorable product mix, product cost focus as well as supply chain efficiencies. Further, Nu Skin business’ gross margin expanded to 78.3% from 77.6% reported in the prior-year quarter.
Selling expenses increased from $248.6 million in the prior-year quarter to $277.9 million. As a percentage of sales, the metric came in at 39.5% compared with 40.6% reported in the year-ago quarter. Nu Skin business’ selling expenses were 42.4% of sales, down from 43.3% in the year-ago quarter.
General and administrative expenses of $168.8 million increased from $151.6 million in the year-ago quarter. As a percentage of sales, general and administrative expenses contracted from 24.7% to 24%. Effective expenses management and gains from leverage of revenue growth contributed to the upside.
Operating income of $85.4 million increased from $58.1 million in the year-ago quarter. Further, operating margin was 12.1%, up from 9.5% reported in the year-ago quarter. The company is on track to achieve its operating margin goal of 13%.
Segmental Results
Segment-wise, revenues (at cc) improved 14% in Americas/Pacific, 6% in South Korea, 49% in EMEA, 2% in Southeast Asia and 1% in Japan. However, the same declined 4% in Mainland China at cc. Revenues were flat in Hong Kong/Taiwan at cc. Total Nu Skin revenues of $655.7 million increased 8% at cc from the prior-year quarter’s figure of $574.2 million.
The company benefited from an impressive 27% revenue growth in the manufacturing division at cc. Revenues in the Grow Tech business declined 38% at cc.
Other Financial Details
Nu Skin ended the quarter with cash and cash equivalents of $354.8 million, long-term debt of $288.3 million and total stockholders' equity of $917.8 million.
During the reported quarter, the company paid out dividends of $19 million and repurchased $10 million worth of shares. With this, it currently has $265.4 million remaining under the current share repurchase authorization.
In a separate press release, Nu Skin announced a dividend of 38 cents per share payable on Sep 8, 2021 to shareholders of record as of Aug 27.
Image Source: Zacks Investment Research
Guidance
Owing to ongoing efficiencies in the business, the company is revising its 2021 earnings per share (EPS) guidance upward. Management now expects EPS in the range of $4.30-$4.50, indicating an increase of 18-24%. Earlier, the company had projected EPS within $4.05-$4.30, indicating an increase of 12-18%.
During 2021, revenues are anticipated in the range of $2.81-$2.87 billion, which calls for an increase of 9-11% year over year. It anticipates favorable currency impact of 3-4% on revenues.
For the third quarter of 2021, the company projects revenues of $700-$730 million that includes favorable currency impacts of 2-3%. The projection suggests flat to 4% growth from the year-ago quarter’s level. Quarterly EPS is anticipated between $1.10 and $1.20, indicating 2-11% growth from the year-ago quarter’s levels.
The Zacks Rank #4 (Sell) stock has declined 10% in the past three months against the industry’s 7.7% growth.
Darling Ingredients Inc. (DAR - Free Report) , currently carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 29.8%, on average.
Medifast, Inc. (MED - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 12.7%, on average.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Nu Skin (NUS) Q2 Earnings Beat Estimates, Sales Grow Y/Y
Nu Skin Enterprises, Inc. (NUS - Free Report) delivered impressive second-quarter 2021 results, with the top and the bottom line beating the Zacks Consensus Estimate as well as increasing year over year. Management raised 2021 earnings view.
Results gained from continued strength in its beauty device systems as well as further adoption of social commerce. The company is encouraged by its recent innovative device system, ageLOC Boost, which saw solid momentum with the EMEA launch. Management is also impressed with the rollout of Nutricentials Bioadaptives. The company plans to roll out Beauty Focus Collagen+ and ageLOC Meta in the second half of the year.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin Enterprises, Inc. price-consensus-eps-surprise-chart | Nu Skin Enterprises, Inc. Quote
Q2 Highlights
Nu Skin reported quarterly earnings of $1.15 a share, which beat the Zacks Consensus Estimate of $1.06 per share. The metric surged 42% from 81 cents reported in the year-ago quarter. The upside can be attributed to solid gross margin and operating margin. Effective cost-control measures and supply chain efficiency are also driving growth.
Revenues of $704.1 million rallied 15% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate of $702.6 million. Revenues included a positive impact of 6% from foreign-currency fluctuations. On a constant-currency (cc) basis, revenues increased 9%. The upside can be attributed to increase in sales leaders.
Sales leaders were up 15% year over year to 64,228 on the back of new product introductions and better leader qualification programs. Nu Skin’s customer base dropped 2% to 1,467,617. The company highlighted that the downside was caused by massive surge in the year-ago quarter.
Gross profit of $532.1 million increased from $458.3 million reported in the year-ago quarter. Gross margin expanded year over year from 74.8% to 75.6% on the back of favorable product mix, product cost focus as well as supply chain efficiencies. Further, Nu Skin business’ gross margin expanded to 78.3% from 77.6% reported in the prior-year quarter.
Selling expenses increased from $248.6 million in the prior-year quarter to $277.9 million. As a percentage of sales, the metric came in at 39.5% compared with 40.6% reported in the year-ago quarter. Nu Skin business’ selling expenses were 42.4% of sales, down from 43.3% in the year-ago quarter.
General and administrative expenses of $168.8 million increased from $151.6 million in the year-ago quarter. As a percentage of sales, general and administrative expenses contracted from 24.7% to 24%. Effective expenses management and gains from leverage of revenue growth contributed to the upside.
Operating income of $85.4 million increased from $58.1 million in the year-ago quarter. Further, operating margin was 12.1%, up from 9.5% reported in the year-ago quarter. The company is on track to achieve its operating margin goal of 13%.
Segmental Results
Segment-wise, revenues (at cc) improved 14% in Americas/Pacific, 6% in South Korea, 49% in EMEA, 2% in Southeast Asia and 1% in Japan. However, the same declined 4% in Mainland China at cc. Revenues were flat in Hong Kong/Taiwan at cc. Total Nu Skin revenues of $655.7 million increased 8% at cc from the prior-year quarter’s figure of $574.2 million.
The company benefited from an impressive 27% revenue growth in the manufacturing division at cc. Revenues in the Grow Tech business declined 38% at cc.
Other Financial Details
Nu Skin ended the quarter with cash and cash equivalents of $354.8 million, long-term debt of $288.3 million and total stockholders' equity of $917.8 million.
During the reported quarter, the company paid out dividends of $19 million and repurchased $10 million worth of shares. With this, it currently has $265.4 million remaining under the current share repurchase authorization.
In a separate press release, Nu Skin announced a dividend of 38 cents per share payable on Sep 8, 2021 to shareholders of record as of Aug 27.
Image Source: Zacks Investment Research
Guidance
Owing to ongoing efficiencies in the business, the company is revising its 2021 earnings per share (EPS) guidance upward. Management now expects EPS in the range of $4.30-$4.50, indicating an increase of 18-24%. Earlier, the company had projected EPS within $4.05-$4.30, indicating an increase of 12-18%.
During 2021, revenues are anticipated in the range of $2.81-$2.87 billion, which calls for an increase of 9-11% year over year. It anticipates favorable currency impact of 3-4% on revenues.
For the third quarter of 2021, the company projects revenues of $700-$730 million that includes favorable currency impacts of 2-3%. The projection suggests flat to 4% growth from the year-ago quarter’s level. Quarterly EPS is anticipated between $1.10 and $1.20, indicating 2-11% growth from the year-ago quarter’s levels.
The Zacks Rank #4 (Sell) stock has declined 10% in the past three months against the industry’s 7.7% growth.
Some Solid Staple Bets
Inter Parfums, Inc. (IPAR - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 27.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Darling Ingredients Inc. (DAR - Free Report) , currently carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 29.8%, on average.
Medifast, Inc. (MED - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 12.7%, on average.