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) Down More Than 15% in 3 Months: Here's Why
Read MoreHide Full Article
Nu Skin Enterprises, Inc. (NUS - Free Report) is bearing the brunt of prolonged COVID-associated factors, which have been marring its performance. The global integrated beauty and wellness company is battling unfavorable currency headwinds. These were reflected in NUS’s second-quarter 2022 results, with the top and the bottom line declining year over year and the latter missing the Zacks Consensus Estimate. Management trimmed the 2022 revenues and earnings view.
Shares of the Zacks Rank #4 (Sell) stock have slumped 15.8% in the past three months compared with the industry’s 10% decline.
Let’s delve deeper.
Dismal Q2 Results, Lowered View
In second-quarter 2022, Nu Skin’s performance was impacted by extended pandemic-led factors in Mainland China, sluggishness in the EMEA region due to the ongoing conflict, muted global economic conditions weighing on emerging markets and the strengthening of the U.S. dollar. Quarterly adjusted earnings of 77 cents a share declined from $1.15 reported in the year-ago quarter. Revenues of $560.6 million fell 20% on a reported basis. On a constant-currency (cc) basis, revenues declined 15%. Sales leaders were down 24% year over year to 50,085. Nu Skin’s customer base fell6% to 1,380,615. The company’s paid affiliates were down 16% to 242,133.
Nu Skin believes that tough macroeconomic factors will continue to impact business operations in the short term. In this regard, continued economic uncertainty, prolonged COVID-associated factors, unfavorable currency rates and geopolitical conflicts are threats. As a result, the company trimmed full-year revenues and earnings view. Nu Skin anticipates 2022 revenues to be $2.33-$2.41 billion, calling for an 11-14% decline from the year-ago period’s reported figure. The company had earlier expected revenues to be $2.51 billion to $2.62 billion.
Management now expects 2022 adjusted earnings per share (EPS) in the range of $3.30 to $3.60, excluding restructuring and impairment charges and charges associated with the fourth-quarter 2021 exit from Grow Tech. The current projection suggests a decline from adjusted earnings of $4.14 reported last year. Earlier, management had guided earnings in the bracket of $3.60-$3.90 per share.
Image Source: Zacks Investment Research
For the third quarter, Nu Skin expects revenues between $550 million and $590 million. The current revenue projection suggests an 8-13% decline from the year-ago quarter’s level. The company guided third-quarter adjusted earnings to be 70 cents to 85 cents a share, calling for a decline from 97 cents reported in the year-ago period.
Unfavorable Currency Hurts
Nu Skin’s strong international presence exposes it to the risk of volatile currency movements. Any adverse currency fluctuation is likely to weigh on the company’s operating performance. In second-quarter 2022, revenues included a negative impact of 5% from foreign currency fluctuations. For the third quarter, Nu Skin expects an unfavorable foreign currency impact of 6% on revenues. The company envisions an unfavorable foreign currency impact of approximately 5% on 2022 revenues.
In second-quarter 2022, gross profit of $412.5 million declined from $532.1 million reported in the year-ago quarter. The gross margin contracted 200 basis points to 73.6%. The downside was due to product mix and unfavorable foreign currency exchange. Nu Skin business’ gross margin contracted to 77% from 78.3%.
Wrapping Up
With the help of advanced technology and well-strategized product programs, Nu Skin tries to capture greater market share and maintain growth momentum. In fact, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. Management is optimistic about its Nu Vision 2025 strategy to become the world’s leading integrated beauty and wellness company driven by a dynamic affiliate opportunity platform.
That being said, let’s see if these upsides can help Nu Skin counter the earlier-mentioned hurdles.
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. IPAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and EPS suggests growth of 14.9% and 18.2%, respectively, from the year-ago period’s reported figures. IPAR has a trailing four-quarter earnings surprise of 31.1%, on average.
e.l.f. Beauty, a cosmetic company, currently has a Zacks Rank #2 (Buy). ELF has a trailing four-quarter earnings surprise of almost 77%, on average.
The Zacks Consensus Estimate for e.l.f. Beauty’s current financial year sales and EPS suggests growth of 16.8% and almost 6%, respectively, from the year-ago period’s reported figures.
Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products, carriesa Zacks Rank #2. PPC has a trailing four-quarter earnings surprise of 39%, on average.
The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial year EPS suggests growth of 82% from the year-ago reported number.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Nu Skin (NUS) Down More Than 15% in 3 Months: Here's Why
Nu Skin Enterprises, Inc. (NUS - Free Report) is bearing the brunt of prolonged COVID-associated factors, which have been marring its performance. The global integrated beauty and wellness company is battling unfavorable currency headwinds. These were reflected in NUS’s second-quarter 2022 results, with the top and the bottom line declining year over year and the latter missing the Zacks Consensus Estimate. Management trimmed the 2022 revenues and earnings view.
Shares of the Zacks Rank #4 (Sell) stock have slumped 15.8% in the past three months compared with the industry’s 10% decline.
Let’s delve deeper.
Dismal Q2 Results, Lowered View
In second-quarter 2022, Nu Skin’s performance was impacted by extended pandemic-led factors in Mainland China, sluggishness in the EMEA region due to the ongoing conflict, muted global economic conditions weighing on emerging markets and the strengthening of the U.S. dollar. Quarterly adjusted earnings of 77 cents a share declined from $1.15 reported in the year-ago quarter. Revenues of $560.6 million fell 20% on a reported basis. On a constant-currency (cc) basis, revenues declined 15%. Sales leaders were down 24% year over year to 50,085. Nu Skin’s customer base fell6% to 1,380,615. The company’s paid affiliates were down 16% to 242,133.
Nu Skin believes that tough macroeconomic factors will continue to impact business operations in the short term. In this regard, continued economic uncertainty, prolonged COVID-associated factors, unfavorable currency rates and geopolitical conflicts are threats. As a result, the company trimmed full-year revenues and earnings view. Nu Skin anticipates 2022 revenues to be $2.33-$2.41 billion, calling for an 11-14% decline from the year-ago period’s reported figure. The company had earlier expected revenues to be $2.51 billion to $2.62 billion.
Management now expects 2022 adjusted earnings per share (EPS) in the range of $3.30 to $3.60, excluding restructuring and impairment charges and charges associated with the fourth-quarter 2021 exit from Grow Tech. The current projection suggests a decline from adjusted earnings of $4.14 reported last year. Earlier, management had guided earnings in the bracket of $3.60-$3.90 per share.
Image Source: Zacks Investment Research
For the third quarter, Nu Skin expects revenues between $550 million and $590 million. The current revenue projection suggests an 8-13% decline from the year-ago quarter’s level. The company guided third-quarter adjusted earnings to be 70 cents to 85 cents a share, calling for a decline from 97 cents reported in the year-ago period.
Unfavorable Currency Hurts
Nu Skin’s strong international presence exposes it to the risk of volatile currency movements. Any adverse currency fluctuation is likely to weigh on the company’s operating performance. In second-quarter 2022, revenues included a negative impact of 5% from foreign currency fluctuations. For the third quarter, Nu Skin expects an unfavorable foreign currency impact of 6% on revenues. The company envisions an unfavorable foreign currency impact of approximately 5% on 2022 revenues.
In second-quarter 2022, gross profit of $412.5 million declined from $532.1 million reported in the year-ago quarter. The gross margin contracted 200 basis points to 73.6%. The downside was due to product mix and unfavorable foreign currency exchange. Nu Skin business’ gross margin contracted to 77% from 78.3%.
Wrapping Up
With the help of advanced technology and well-strategized product programs, Nu Skin tries to capture greater market share and maintain growth momentum. In fact, the company’s long-term strategies stand on three key pillars — Products, Programs and Platforms. Management is optimistic about its Nu Vision 2025 strategy to become the world’s leading integrated beauty and wellness company driven by a dynamic affiliate opportunity platform.
That being said, let’s see if these upsides can help Nu Skin counter the earlier-mentioned hurdles.
Stocks to Consider
Some better-ranked stocks are Inter Parfums (IPAR - Free Report) , e.l.f. Beauty (ELF - Free Report) and Pilgrim’s Pride (PPC - Free Report) .
Inter Parfums is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. IPAR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ current financial-year sales and EPS suggests growth of 14.9% and 18.2%, respectively, from the year-ago period’s reported figures. IPAR has a trailing four-quarter earnings surprise of 31.1%, on average.
e.l.f. Beauty, a cosmetic company, currently has a Zacks Rank #2 (Buy). ELF has a trailing four-quarter earnings surprise of almost 77%, on average.
The Zacks Consensus Estimate for e.l.f. Beauty’s current financial year sales and EPS suggests growth of 16.8% and almost 6%, respectively, from the year-ago period’s reported figures.
Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen, and value-added chicken and pork products, carriesa Zacks Rank #2. PPC has a trailing four-quarter earnings surprise of 39%, on average.
The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial year EPS suggests growth of 82% from the year-ago reported number.