Nu Skin (NUS) Up 5.6% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Nu Skin Enterprises reported a decline in both revenue and earnings for Q1 2024, primarily impacted by foreign currency fluctuations, while managing costs effectively to support its bottom line [2][5]. Financial Performance - Adjusted earnings were 9 cents per share, down from 37 cents year-over-year, but exceeded the Zacks Consensus Estimate of 5 cents [2]. - Revenues totaled $417.3 million, a 13.3% decline year-over-year, missing the Zacks Consensus Estimate of $431 million, with a negative impact of 3.8% from foreign currency [2][3]. - Gross profit decreased to $294.1 million, with a gross margin of 70.5%, down from 72.3% in the previous year [3]. Customer and Sales Metrics - Sales leaders decreased by 12% to 38,609, while the customer base fell by 19% to 875,261 [3]. - Paid affiliates dropped by 30% to 154,171, with an adjusted decline of 14% [3]. Cost Management - Selling expenses reduced to $153.5 million from $188.1 million, representing 36.8% of revenues, down from 39.1% [3]. - General and administrative expenses decreased to $124.6 million, accounting for 29.9% of revenues, up from 27.8% [4]. Regional Revenue Performance - Revenue declines were noted across various regions, with the Americas down 20.1% and Mainland China down 39.3% [4]. - Other revenues surged by 684.3% year-over-year [4]. Financial Position and Guidance - Cash and cash equivalents stood at $212.5 million, with long-term debt of $453.2 million and total stockholders' equity of $810.2 million [5]. - For 2024, Nu Skin anticipates revenues between $1.73 billion and $1.87 billion, indicating a 12-5% decline from the previous year [6]. - Adjusted EPS guidance for 2024 is set between 95 cents and $1.35, down from $1.85 in 2023 [7]. Estimate Trends - There has been a downward trend in consensus estimates, with a significant shift of -52.7% noted [8][10]. Industry Comparison - Nu Skin operates within the Zacks Cosmetics industry, where competitor Helen of Troy reported a slight revenue increase of 1% in its latest quarter [11].