NYSE$NUS

Nu Skin Enterprises Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Nu Skin reported first-quarter 2020 results above guidance, demonstrating stability with strong customer activity despite COVID-19 challenges.

Nu Skin Enterprises reported Q1 2020 revenue and earnings above guidance, driven by the efforts of sales leaders and global teams, despite challenges posed by COVID-19. The company saw continued stability with strong customer activity, supported by digital properties and effective supply chain management.

  • Revenue for Q1 2020 was $518.0 million, a decrease of 17% year-over-year, with a 2% negative impact from foreign exchange rates.
  • Earnings per share (EPS) for Q1 2020 was $0.36, a 53% decrease compared to the prior-year quarter.
  • The company highlighted that over 80% of revenue comes through its digital properties, enhanced by strategic investments in technology infrastructure and digital tools.
  • Nu Skin generated solid cash flow during the quarter, increased its dividend for the 19th consecutive year, and repurchased shares.

Headline financials

Total Revenue

$518M

Previous: $624M-16.9%
EPS (adj)

$0.36

Previous: $0.77-53.2%
Customers

1.1M

Previous: 1.2M-5.2%
Sales Leaders

49.6K

Previous: 63.2K-21.7%
Capital Expenditures

-$19.4M

Previous: -$13.8M-40.8%
Free Cash Flow

$343K

Previous: $29.2M-98.8%
Net Income

$19.7M

Previous: $43M-54.1%
Operating Income

$36.6M

Previous: $68.7M-46.7%
Gross Profit

$392M

Previous: $477M-17.8%
Cash & Equivalents

$353M

Previous: $310M+13.6%
Total Assets

$1.75B

Previous: $1.76B-0.5%
Stock-Based Comp

$3.46M

Previous: $5.04M-31.5%

Revenue & EPS history

Nu Skin · Revenue · Quarterly

$518M

Q1 2020-16.9%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Nu Skin · $518M total across 2 segments · Q1 2020

  • Total Nu Skin
    $491M-17.4%
  • Manufacturing
    $27.1M-7.3%

Forward guidance

Nu Skin anticipates business will perform well as sales leaders leverage technology investments to drive product demand. The situation in Mainland China is stabilizing, which is expected to improve performance throughout the year. The global preview of the newest beauty device late in 2020 is expected to set the business up for a return to growth toward the end of the year. Q2 2020 revenue is expected to be $520 to $550 million, with EPS of $0.42 to $0.52. 2020 revenue is guided at $2.17 to $2.26 billion with EPS of $2.05 to $2.35.

Tailwinds

  • Sales leaders are expected to leverage technology investments to drive product demand and interest in the business opportunity.
  • The situation in Mainland China is stabilizing with the country returning to work, a key development expected to translate into improvement throughout the year.
  • Similar trends are anticipated in most other markets as pandemic restrictions begin to ease across the globe.
  • The global preview of the newest beauty device late in 2020 is expected to set the business up for a return to growth toward the end of the year.
  • First-quarter results were encouraging despite economic challenges.

Headwinds

  • There is a great deal of uncertainty in the broader economy.
  • Q2 2020 revenue is expected to be negatively impacted by 3 to 4 percent due to foreign currency fluctuations.
  • 2020 revenue guidance reflects a negative foreign currency impact of 2 to 3 percent, an increased fx headwind of more than 1 percent from the previous guidance.
  • The COVID-19 pandemic continues to present significant challenges globally.
  • Supply chain disruptions related to certain ingredients and packaging materials due to the pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.9%

Avg return

Earnings day

-0.7%

Avg return

5 days after

-2.1%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+28.3%

Q1 2020

Best reaction

-20.5%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-10.3%-23.4%
Q4 2025-18.1%-16.7%-29.8%
Q3 2025-15.9%-11.4%-7.8%
Q1 2025+11.2%+18.8%+28.7%
Q4 2024+17.8%+22.0%+26.5%
Q3 2024+1.1%+11.6%+15.7%
Q2 2024-4.0%-9.9%-23.7%
Q1 2024+4.3%+10.3%+8.1%
Q4 2023-20.5%-21.3%-23.8%
Q3 2023-11.2%-8.6%-7.5%
Q2 2023-6.5%-10.7%-18.7%
Q1 2023-3.7%-4.2%-13.1%
Q4 2022+0.3%+1.0%-11.8%
Q3 2022-18.8%-9.4%+7.7%
Q2 2022-3.4%-3.8%-10.3%
Q1 2022-2.8%+0.4%+5.2%
Q4 2021+10.8%+7.9%-4.3%
Q3 2021+6.1%+8.9%+10.5%
Q2 2021+0.9%-0.6%-7.0%
Q1 2021+11.7%+13.5%+17.0%
Q4 2020-13.0%-20.8%-14.9%
Q3 2020+3.9%-10.3%+0.9%
Q2 2020+2.3%+3.3%+3.1%
Q1 2020+28.3%+24.9%+44.6%
Q4 2019-13.4%-12.0%-43.6%
Q3 2019-15.3%-11.5%-19.2%
Q2 2019+5.8%+6.6%+11.9%
Q1 2019+26.9%+15.5%-4.9%
Q4 2018-7.4%+1.4%-9.7%
Q3 2018-13.4%-10.5%-12.1%
Q2 2018+15.7%+12.8%+8.9%
Q1 2018-1.1%+1.8%+11.8%
Q4 2017-1.6%+1.7%+5.8%
Q3 2017-4.3%-5.4%+4.3%
Q2 2017-2.9%-2.3%-2.1%
Q1 2017-2.5%+1.5%+1.7%
Q4 2016-12.3%-12.6%-4.6%
Q3 2016-8.7%-8.2%-14.0%
Q2 2016+12.2%+10.8%+11.1%
Q1 2016+3.2%
Q4 2015-11.3%
Q3 2015+4.5%
Q2 2015+16.2%
Q1 2015-5.0%
Q4 2014+18.4%
Q3 2014-19.6%
Q2 2014-17.4%
Q1 2014-10.9%
Q4 2013-5.8%
Q3 2013+8.6%
Q2 2013+5.3%
Q1 2013+5.0%
Q4 2012-0.7%
Q3 2012+16.7%
Q2 2012+15.9%
Q1 2012-12.8%
Q4 2011-0.1%
Q3 2011-3.9%
Q2 2011-4.0%
Q1 2010+1.6%
Q1 2011+1.6%
Q4 2008-2.0%
Q4 2010-2.0%
Q3 2010-2.1%
Q3 2009-2.1%
Q4 2009-6.1%
Q2 2010-6.1%
Q2 2009-6.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro