Back to top

Image: Bigstock

Factors to Consider as Nu Skin (NUS) Gears Up for Q3 Earnings

Read MoreHide Full Article

Nu Skin Enterprises, Inc. (NUS - Free Report) is likely to display year-over-year declines in the top and bottom lines, when it reports third-quarter 2021 earnings on Nov 3. The Zacks Consensus Estimate for revenues is pegged at $682 million, suggesting a drop of 9.2% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has moved 19.1% south over the past 30 days to 93 cents per share, which indicates a decrease of 13.9% from the figure reported in the prior-year period. In the last reported quarter, the company delivered an earnings surprise of 8.5%. The developer and distributer of personal care and wellness products has a trailing four-quarter earnings surprise of 15.7%, on average.

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

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

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

Key Factors to Note

Management, in a recent release, stated that the third-quarter revenues bore the brunt of challenges stemming from the disruptions caused by the delta variant across several markets. The unexpected government-imposed restrictions disrupted the sale and distribution of the company’s products, especially across the Mainland China and Southeast Asia regions. Nu Skin also encountered disturbances in its promotional activities, including the incentive trips and performance of local expos across various markets. The company lowered its third-quarter revenue guidance to a band of $637-$642 million compared with the earlier-anticipated range of $700-$730 million.

Nonetheless, management remained impressed with the launch of Collagen+ in the United States amid pandemic-inflicted disruptions. The company’s Tencent digital tools’ introduction across China, during the third quarter, bodes well. Apart from these, Nu Skin’s focus on empowering sales leaders via innovations and engaging technology platforms is noteworthy.

That said, rising selling as well as general and administrative expenses are a concern.

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 carries a Zacks Rank #5 (Strong Sell) and has an Earnings ESP of -11.07%.

Stocks With Favorable Combinations

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

Tyson Foods (TSN - Free Report) has an Earnings ESP of +19.13% and carries a Zacks Rank #3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Coty Inc. (COTY - Free Report) has an Earnings ESP of +50.00% and carries a Zacks Rank of 3, currently.

The Estee Lauder Companies (EL - Free Report) has an Earnings ESP of +0.24% and currently holds a Zacks Rank #3.

Published in