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Nu Skin (NUS) Trims FY24 View Despite Q2 Earnings Beat
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Nu Skin Enterprises, Inc. (NUS - Free Report) posted second-quarter 2024 results, with the top and the bottom line surpassing their respective Zacks Consensus Estimates. However, earnings and net sales declined year over year amid a dynamic macroeconomic environment. Taking into account the company’s first-half 2024 performance and rising foreign exchange headwinds, management is narrowing the annual guidance range.
That said, the company is refining the operating model through via transformation and continued focus on cost-saving measures. This includes optimizing product portfolios and managing expenses more effectively. Management is accelerating its transformation efforts to establish itself as a leading integrated beauty, wellness and lifestyle ecosystem by creating synergistic value between Nu Skin core and Rhyz.
Quarter in Detail
Nu Skin posted adjusted earnings of 21 cents a share, excluding restructuring. The metric declined from the adjusted figure of 54 cents reported in the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate of 18 cents.
Revenues of $439.1 million tumbled 12.2% year over year. Revenues included a negative impact of 4.2% from foreign currency fluctuations. On a constant-currency basis, revenues fell 8%. Rhyz revenues rose 32.3% year over year. Nu Skin’s top line surpassed the Zacks Consensus Estimate of $430 million.
Sales leaders were down 16% year over year to 38,592. Nu Skin’s customer base dropped 14% to 893,514. The company’s paid affiliates were down 17% to 155,486. On an adjusted basis, paid affiliates tumbled 9%.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
The gross profit of $307.2 million declined from the $364.7 million reported in the year-ago quarter. The gross margin came in at 70%, down from 72.9% reported in the year-ago quarter. The Nu Skin business’ gross margin came in at 76.1%, down from 77.2% reported in the year-ago quarter.
Selling expenses declined to $165.5 million from the $185.2 million reported in the prior-year quarter. As a percentage of revenues, the metric was 37.7%, up from the 37% reported in the year-ago quarter. Nu Skin business’ selling expenses were 42.2%, up from 40.2% reported in the prior-year quarter.
General and administrative expenses of $117.9 million declined from $137 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses were 26.9%, down from 27.4% in the year-ago period.
The company’s adjusted operating margin (excluding restructuring charges) contracted to 5.4% from 8.5% reported in the year-ago quarter.
Regional Results
Region-wise, revenues (at cc) declined 15.1%, 24.5%, 0.5%, 4.9%, 14.3%, 12.3% and 5.5% in the Americas, Mainland China, Southeast Asia/Pacific, Japan, South Korea, Europe & Africa and Hong Kong/Taiwan, respectively. Meanwhile, NUS’ other revenues surged 100.8% year over year.
Other Financial Details
The Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $224.3 million, long-term debt of $428.3 million and total stockholders' equity of $686.2 million. In the reported quarter, the company paid out dividends of $3 million while not making any share repurchases. The company has $162.4 million remaining under the current share repurchase authorization.
Nu Skin announced a cash dividend of 6 cents per share, payable on Sep 11, 2024, of shareholders’ record as of Aug 30.
Image Source: Zacks Investment Research
Guidance
Nu Skin now anticipates revenues in the band of $1.73-$1.81 billion for 2024, which suggests a 12-8% decline from the year-ago period’s reported figure. The company envisions unfavorable foreign currency impacts of 4-3% on 2024 revenues. Earlier, the metric was expected to be in the range of $1.73-$1.87 billion.
Management envisions an adjusted earnings per share (EPS) of 75-95 cents. The projection suggests a decline from adjusted earnings of $1.85 recorded in 2023. Management had earlier envisioned an adjusted EPS of 95 cents to $1.35 for 2024.
For third-quarter 2024, the company expects revenues between $430 million and $465 million, including an unfavorable foreign currency impact of nearly 4% to 3%. The revenue projection suggests a decline of 14% to 7% from the year-ago quarter’s reported level. The company expects adjusted earnings of 15-25 cents a share.
The company’s shares have declined 21.3% in the past three months compared with the industry’s decrease of 22.3%.
The Zacks Consensus Estimate Vital Farms’ current financial-year sales and earnings indicate growth of 24.9% and 66.1%, respectively, from the year-ago reported numbers.
Philip Morris (PM - Free Report) , a tobacco company, has a trailing four-quarter earnings surprise of 1.8%, on average. PM currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Philip Morris’ current financial-year sales and earnings indicates growth of almost 6% and 7%, respectively, from prior-year reported levels.
Treehouse Foods, Inc. (THS - Free Report) is a manufacturer of packaged foods and beverages. It presently carries a Zacks Rank #2. THS has a trailing four-quarter average earnings surprise of 25.1%.
The Zacks Consensus Estimate for Treehouse Foods’ current financial-year earnings and sales indicates a decline of 7.3% and 1.8%, respectively, from the year-ago reported figures.
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Nu Skin (NUS) Trims FY24 View Despite Q2 Earnings Beat
Nu Skin Enterprises, Inc. (NUS - Free Report) posted second-quarter 2024 results, with the top and the bottom line surpassing their respective Zacks Consensus Estimates. However, earnings and net sales declined year over year amid a dynamic macroeconomic environment. Taking into account the company’s first-half 2024 performance and rising foreign exchange headwinds, management is narrowing the annual guidance range.
That said, the company is refining the operating model through via transformation and continued focus on cost-saving measures. This includes optimizing product portfolios and managing expenses more effectively. Management is accelerating its transformation efforts to establish itself as a leading integrated beauty, wellness and lifestyle ecosystem by creating synergistic value between Nu Skin core and Rhyz.
Quarter in Detail
Nu Skin posted adjusted earnings of 21 cents a share, excluding restructuring. The metric declined from the adjusted figure of 54 cents reported in the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate of 18 cents.
Revenues of $439.1 million tumbled 12.2% year over year. Revenues included a negative impact of 4.2% from foreign currency fluctuations. On a constant-currency basis, revenues fell 8%. Rhyz revenues rose 32.3% year over year. Nu Skin’s top line surpassed the Zacks Consensus Estimate of $430 million.
Sales leaders were down 16% year over year to 38,592. Nu Skin’s customer base dropped 14% to 893,514. The company’s paid affiliates were down 17% to 155,486. On an adjusted basis, paid affiliates tumbled 9%.
Nu Skin Enterprises, Inc. Price, Consensus and EPS Surprise
Nu Skin Enterprises, Inc. price-consensus-eps-surprise-chart | Nu Skin Enterprises, Inc. Quote
The gross profit of $307.2 million declined from the $364.7 million reported in the year-ago quarter. The gross margin came in at 70%, down from 72.9% reported in the year-ago quarter. The Nu Skin business’ gross margin came in at 76.1%, down from 77.2% reported in the year-ago quarter.
Selling expenses declined to $165.5 million from the $185.2 million reported in the prior-year quarter. As a percentage of revenues, the metric was 37.7%, up from the 37% reported in the year-ago quarter. Nu Skin business’ selling expenses were 42.2%, up from 40.2% reported in the prior-year quarter.
General and administrative expenses of $117.9 million declined from $137 million in the year-ago quarter. As a percentage of revenues, general and administrative expenses were 26.9%, down from 27.4% in the year-ago period.
The company’s adjusted operating margin (excluding restructuring charges) contracted to 5.4% from 8.5% reported in the year-ago quarter.
Regional Results
Region-wise, revenues (at cc) declined 15.1%, 24.5%, 0.5%, 4.9%, 14.3%, 12.3% and 5.5% in the Americas, Mainland China, Southeast Asia/Pacific, Japan, South Korea, Europe & Africa and Hong Kong/Taiwan, respectively. Meanwhile, NUS’ other revenues surged 100.8% year over year.
Other Financial Details
The Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $224.3 million, long-term debt of $428.3 million and total stockholders' equity of $686.2 million. In the reported quarter, the company paid out dividends of $3 million while not making any share repurchases. The company has $162.4 million remaining under the current share repurchase authorization.
Nu Skin announced a cash dividend of 6 cents per share, payable on Sep 11, 2024, of shareholders’ record as of Aug 30.
Image Source: Zacks Investment Research
Guidance
Nu Skin now anticipates revenues in the band of $1.73-$1.81 billion for 2024, which suggests a 12-8% decline from the year-ago period’s reported figure. The company envisions unfavorable foreign currency impacts of 4-3% on 2024 revenues. Earlier, the metric was expected to be in the range of $1.73-$1.87 billion.
Management envisions an adjusted earnings per share (EPS) of 75-95 cents. The projection suggests a decline from adjusted earnings of $1.85 recorded in 2023. Management had earlier envisioned an adjusted EPS of 95 cents to $1.35 for 2024.
For third-quarter 2024, the company expects revenues between $430 million and $465 million, including an unfavorable foreign currency impact of nearly 4% to 3%. The revenue projection suggests a decline of 14% to 7% from the year-ago quarter’s reported level. The company expects adjusted earnings of 15-25 cents a share.
The company’s shares have declined 21.3% in the past three months compared with the industry’s decrease of 22.3%.
Top Ranked Staple Bets
Vital Farms (VITL - Free Report) offers a range of produced pasture-raised foods. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter earnings surprise of 102.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate Vital Farms’ current financial-year sales and earnings indicate growth of 24.9% and 66.1%, respectively, from the year-ago reported numbers.
Philip Morris (PM - Free Report) , a tobacco company, has a trailing four-quarter earnings surprise of 1.8%, on average. PM currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Philip Morris’ current financial-year sales and earnings indicates growth of almost 6% and 7%, respectively, from prior-year reported levels.
Treehouse Foods, Inc. (THS - Free Report) is a manufacturer of packaged foods and beverages. It presently carries a Zacks Rank #2. THS has a trailing four-quarter average earnings surprise of 25.1%.
The Zacks Consensus Estimate for Treehouse Foods’ current financial-year earnings and sales indicates a decline of 7.3% and 1.8%, respectively, from the year-ago reported figures.