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Nu Skin (NUS) Provides Weak 2016 Sales View; CEO to Exit
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Nu Skin Enterprises Inc.(NUS - Free Report) recently updated its financial guidance for 2016, wherein it expects sluggish sales growth and also announced the exit of its Chief Executive Officer (‘CEO’). Shares of Nu Skin declined 7.2% yesterday after the news. The company also provided an initial guidance for 2017.
Nu Skin’s CEO Truman Hunt has decided to leave the company in mid-2017 to take a three-year leadership assignment with the Mormon Church. Hunt, who served the company as president and CEO since 2003, will be replaced by Ritch Wood, the current Chief Financial Officer (‘CFO’). A new CFO will be named before Wood takes up the position of CEO.
Separately, the beauty and wellness products company updated its 2016 guidance. It expects revenues of approximately $2.225 billion in 2016. The company now expects fourth-quarter earnings per share to be near the high end of the guidance of 77 cents to 81 cents, provided during the third quarter 2016 conference call. Revenues are now expected to be near the low end of its previous outlook of $550 million to $570 million due to the strength in the U.S. dollar since the election.
Nu Skin also provided initial guidance for 2017. Nu Skin expects revenues in the range of $2.26 billion to $2.30 billion, representing local-currency growth of 4% to 6%. This revenue level reflects a negative foreign currency impact of approximately 3% to 4%. Revenue growth is expected in most of the regions on the back of product and promotional initiatives. Earnings are expected in the range of $3.10 to $3.25 per share.
Nu Skin has been a disappointment on a quarter-to-date basis. We note that in the said period the stock has declined 26.1% compared with the Zacks categorized Cosmetics & Toiletries Market industry’s decline of 12.6%. We note that despite better-than-expected results in the last reported third quarter of 2016, the company faces several issues like share inventory write-down and currency headwinds.
Mondelez International has an expected earnings growth rate of 13.12%. Further, it has delivered positive earnings surprise in three out of the four trailing quarters, reflecting an average earnings surprise of 11.20%.
While Inter Parfums has an expected earnings growth rate of 15%, Helen of Troy has an expected earnings growth rate of 10.8%.
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Nu Skin (NUS) Provides Weak 2016 Sales View; CEO to Exit
Nu Skin Enterprises Inc.(NUS - Free Report) recently updated its financial guidance for 2016, wherein it expects sluggish sales growth and also announced the exit of its Chief Executive Officer (‘CEO’). Shares of Nu Skin declined 7.2% yesterday after the news. The company also provided an initial guidance for 2017.
Nu Skin’s CEO Truman Hunt has decided to leave the company in mid-2017 to take a three-year leadership assignment with the Mormon Church. Hunt, who served the company as president and CEO since 2003, will be replaced by Ritch Wood, the current Chief Financial Officer (‘CFO’). A new CFO will be named before Wood takes up the position of CEO.
NU SKIN ENTERP Price and Consensus
NU SKIN ENTERP Price and Consensus | NU SKIN ENTERP Quote
Separately, the beauty and wellness products company updated its 2016 guidance. It expects revenues of approximately $2.225 billion in 2016. The company now expects fourth-quarter earnings per share to be near the high end of the guidance of 77 cents to 81 cents, provided during the third quarter 2016 conference call. Revenues are now expected to be near the low end of its previous outlook of $550 million to $570 million due to the strength in the U.S. dollar since the election.
Nu Skin also provided initial guidance for 2017. Nu Skin expects revenues in the range of $2.26 billion to $2.30 billion, representing local-currency growth of 4% to 6%. This revenue level reflects a negative foreign currency impact of approximately 3% to 4%. Revenue growth is expected in most of the regions on the back of product and promotional initiatives. Earnings are expected in the range of $3.10 to $3.25 per share.
Nu Skin has been a disappointment on a quarter-to-date basis. We note that in the said period the stock has declined 26.1% compared with the Zacks categorized Cosmetics & Toiletries Market industry’s decline of 12.6%. We note that despite better-than-expected results in the last reported third quarter of 2016, the company faces several issues like share inventory write-down and currency headwinds.
Nu Skin currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the same industry include Inter Parfums Inc. (IPAR - Free Report) and Helen of Troy Limited (HELE - Free Report) , both carrying Zacks Rank #2 (Buy). Another stock in the broader consumer staple sector worth considering is Mondelez International, Inc. (MDLZ - Free Report) , also with a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Mondelez International has an expected earnings growth rate of 13.12%. Further, it has delivered positive earnings surprise in three out of the four trailing quarters, reflecting an average earnings surprise of 11.20%.
While Inter Parfums has an expected earnings growth rate of 15%, Helen of Troy has an expected earnings growth rate of 10.8%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>