Why Nu Skin Enterprises Stock Flopped on Friday

Core Viewpoint - Nu Skin Enterprises reported disappointing second-quarter results, with revenue and adjusted net income falling significantly year over year, leading to a decline in stock value despite exceeding analyst expectations for the quarter [1][2]. Financial Performance - Revenue for the second quarter decreased by 12% year over year to slightly over $439 million [2]. - Non-GAAP adjusted net income fell to $10.4 million ($0.21 per share) from nearly $27 million in the same quarter of 2023 [2]. - Despite the declines, the reported figures surpassed consensus analyst estimates of approximately $432 million in revenue and adjusted earnings of $0.17 per share [2]. Strategic Insights - CEO Ryan Napierski highlighted sequential gains in several markets, including the U.S. and Southeast Asia/Pacific, as a positive aspect of the performance [2]. - The strategic investment arm, Rhyz, experienced a 32% growth, contributing nearly $68 million in revenue during the second quarter [2]. Future Guidance - For the current third quarter, Nu Skin expects revenue between $430 million and $465 million, with adjusted per-share earnings of $0.15 to $0.25 [3]. - The collective analyst estimate for revenue is nearly $460 million, but the forecast for adjusted net income of $0.42 per share does not align with the company's guidance [3]. - For the full year of 2024, the company anticipates revenue between $1.73 billion and $1.81 billion, and adjusted net income per share of $0.75 to $0.95 [3].