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Factors Likely to Decide Nu Skin's (NUS) Fate in Q2 Earnings

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Nu Skin Enterprises, Inc. (NUS - Free Report) is likely to display year-over-year declines in the top and bottom lines when it reports second-quarter 2022 earnings on Aug 4. The Zacks Consensus Estimate for revenues is pegged at $559.9 million, suggesting a decline of 20.5% from the prior-year quarter’s reported figure.

Although the Zacks Consensus Estimate for earnings has moved 6.8% north over the past 30 days to 79 cents per share, it indicates a decrease of 31.3% from the figure reported in the prior-year period. In the last reported quarter, the company delivered an earnings surprise of 4.1%. The developer and distributor of personal care and wellness products has a trailing four-quarter earnings surprise of 10.6%, on average.

Key Factors to Note

In a recent release, Nu Skin stated that second-quarter revenues bore the brunt of global uncertainties like continued COVID-related headwinds in Mainland China, challenges in EMEA related to the ongoing conflict between Russia and Ukraine, and the global economic downturn in regions like Latin America. The company estimated revenues of $557-$562 million for the second quarter, down from the prior stated $590-$620 million. The forecast suggests a sharp decline from revenues of $704.1 million reported in the year-ago period.

Increased promotions and an unfavorable product mix are likely to have marred the company’s bottom-line performance. On its last reported quarter’s earnings call, management anticipated second-quarter EPS of 75-85 cents, indicating a 26-35% slump from the year-ago quarter’s reported level.

However, the company remains encouraged by the solid demand for its recent product introductions — ageLOC Meta and Beauty Focus Collagen+. Under the wellness category, its LifePak nutritional supplements have been doing well. Apart from product launches, its well-knit product strategies and customer retention programs have been driving growth in several market locations.

Nu Skin has been making significant investments in the digital platform, including the launch of next-generation connected devices and improved marketing strategies. The company’s focus on building a robust digital ecosystem to enhance customer attraction and brand awareness bodes well.

Nu Skin Enterprises, Inc. Price and EPS Surprise

 

Nu Skin Enterprises, Inc. Price and EPS Surprise

Nu Skin Enterprises, Inc. price-eps-surprise | Nu Skin Enterprises, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Nu Skin this time around. The combination of a positive Earnings ESP, and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Nu Skin currently has a Zacks Rank #4 (Sell) and an Earnings ESP of -4.03%.

Stocks With Favorable Combination

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

Corteva (CTVA - Free Report) currently has an Earnings ESP of +8.12% and a Zacks Rank #2. CTVA is anticipated to register top and bottom-line growth when it reports the second-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $6.2 billion, indicating an improvement of 9.4% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days to $1.46 per share. However, the consensus estimate for CTVA suggests growth of 4.3% from the year-ago quarter’s reported figure. CTVA has delivered an earnings beat of 22.3%, on average, in the trailing four quarters.

Kellogg (K - Free Report) currently has an Earnings ESP of +2.01% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.7 billion, which suggests a rise of 2.6% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for K’s quarterly earnings has been unchanged in the past 30 days at $1.05 per share. The consensus mark indicates a 7.9% decline from the year-ago quarter’s reported number. Kellogg delivered an earnings beat of 12.8%, on average, in the trailing four quarters.

Ollie's Bargain Outlet (OLLI - Free Report) currently has an Earnings ESP of +6.06% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for OLLI’s quarterly revenues is pegged at $457.5 million, which suggests a jump of 10% from the figure reported in the prior-year quarter.

The consensus mark for Ollie's Bargain’s quarterly earnings has been unchanged at 33 cents per share in the past 30 days. The consensus estimate for OLLI’s quarterly earnings suggests a decline of 36.5% from the year-ago quarter’s reported figure. Ollie's Bargain delivered a negative earnings surprise of 17.1%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.