Nu Skin’s 4Q Profit Jumps 94%

Beauty and wellness solutions provider Nu Skin’s fourth-quarter diluted earnings per share (EPS) surged 94% to $1.40 year-on-year, beating the Street consensus of $1.19.

Meanwhile, 4Q sales grew 28% year-on-year to $748.2 million, but missed analysts’ expectations by $1.5 million. Nu Skin’s (NUS) gross margin dipped from 75.9% to 74% during the reported period due to higher freight charges and geographic mix.

For fiscal 2020, Nu Skin’s revenue increased to $2.58 billion from $2.42 billion year-on-year. Earnings grew to $3.63 per share from $3.10 per share during the same comparative period.

Nu Skin CEO Ritch Wood commented, “Strong 4Q results were driven by 34% year-on-year customer growth. The manufacturing segment posted 42% revenue growth despite global supply chain constraints.”

Looking ahead, Nu Skin forecasted first quarter revenue to come in between $610 million to $640 million on EPS of between $0.65 to $0.75. (See Nu Skin stock analysis on TipRanks)

The company sees fiscal 2021 revenues in the range of $2.71 billion to $2.81 billion and EPS to generate between $3.80 to $4.10. Wood added, “The company expects a strong 2021 on the back of robust product pipeline and digital initiatives in combination with growth in customers and sales leaders.”

Nu Skin stock has had a stellar run surging more than 80% over the past year.

Earlier this month, Jefferies analyst Stephanie Wissink raised the stock’s price target from $60 to $66 (5% upside potential) and reiterated a Buy rating. Stephanie cited FX developments and timing of the company’s ageLOC Boost launch as the factors for lifting his PT. She also remains constructive over the favourable wellness backdrop.

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