Nu Skin Enterprises Inc
) reached a new 52-week high of $128.87 on Nov 29. The company
provided strong fiscal 2014 guidance on Nov 21. In fact, shares
of this supplier of anti-aging personal care products have been
rising ever since it reported solid third quarter 2013 on Oct 31.
Nu Skin's shares closed at $127.84, reflecting a year-to-date
return of 250%.
The company's long-term estimated EPS growth rate is 18.61%.
Average volume of shares traded over the last three months came
in at approximately 1,264K.
Issuance of Strong Fiscal 2014 Guidance
On Nov 21, Nu Skin provided its 2014 guidance. The company
expects earnings per share to grow 25%-30% on a year-over-year
basis to $7.25 - $7.50 for fiscal 2014. Revenues for fiscal 2014
are expected in the range of $3.9 - $4.0 billion, up 22% - 25%
from the prior year. The revenue guidance includes an anticipated
unfavorable foreign currency impact of 3%.
The double-digit growth in earnings and revenue guidance
reflects the company's strong innovation program in its products
and distribution channels across all the regions. This Zacks Rank
#1 (Strong Buy) company is very optimistic about its ageLOC TR90,
a weight management and body shaping system and the latest in
ageLOC anti-aging product line, which is driving the company's
guidance. Nu Skin's ageLOC anti-aging products focus on providing
nutritional and skin care solutions that target the sources of
Started in Sep 2013, the ageLOC TR90 weight management system
was well received in the Greater China and South Asia/Pacific
regions and generated approximately $205 million in
limited-time-offer sales in the third quarter of 2013. The
company expects this momentum to continue through 2014.
Impressive Third Quarter Results
Estimates have been rising ever since the company reported
strong third quarter 2013 results on Oct 31. Earnings of $1.80
per share improved significantly from the prior-year quarter,
posting a 107% increase. Earnings also surpassed the Zacks
Consensus Estimate by 27%. The upswing in earnings was driven by
higher sales in the Greater China and South Asia/Pacific regions,
as well as in South Korea. Higher margins and lower quarterly tax
rate also led to earnings growth in the quarter.
Despite a 3% unfavorable impact from currency, sales increased
76% to $927.6 million in the quarter. Sales were way ahead of the
Zacks Consensus Estimate of $815 million. The successful
execution of ageLOC TR90 weight management system drove sales in
The company's gross margin during the quarter also shot up 140
basis points to 84.9%, primarily due to the TR90 launch in
Greater China and South Asia/Pacific. Operating margin improved
240 basis points to 18.1% in the third quarter, as a result of
Following the strong third quarter results, Nu Skin raised its
2013 revenue guidance to the range of $3.18 - $3.21 billion, up
from its previous guidance of $2.83-$2.86 billion. The new
guidance includes a projected negative currency impact of 4% for
the year, lower than 5% expected previously. The company now
expects 2013 earnings to be $5.77 to $5.82 per share, up from
$4.85 to $5.00 per share expected previously.
Other Stocks to Consider
Some better ranked stocks in the consumer staples sector
Omega Protein Corp
Constellation Brands Inc
Pinnacle Foods Inc
). While Omega and Constellation sport a Zacks Rank #1 (Strong
Buy), Pinnacle carries a Zacks Rank #2 (Buy).
NU SKIN ENTERP (NUS): Free Stock Analysis
OMEGA PROTEIN (OME): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis
CONSTELLATN BRD (STZ): Free Stock Analysis
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