NYSE$NUS

Nu Skin Enterprises Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Nu Skin's Q2 2020 earnings exceeded expectations, driven by its business model and strategic investments, and raised its 2020 guidance.

Nu Skin Enterprises reported second-quarter results above expectations and raised its revenue and earnings per share guidance for 2020. Strong global customer growth of 29 percent in the quarter, driven by focus on empowering sales leaders to reach more customers, resulted in constant currency revenue growth due to the strength of business in the Americas and Europe.

  • Business performed well above expectations driven by socially enabled business model and strategic investments.
  • Strong global customer growth of 29 percent driven by focus on empowering sales leaders.
  • Manufacturing division generated 20 percent revenue growth and increased stability in supply chain.
  • Generated strong cash from operations, raised dividend, strengthened balance sheet and reduced outstanding shares by nearly eight percent.

Headline financials

Total Revenue

$612M

Previous: $624M-1.8%
EPS (adj)

$0.81

Previous: $0.83-2.4%
Customers

1.5M

Previous: 1.2M+29.3%
Sales Leaders

56.0K

Previous: 61.6K-9.0%
Capital Expenditures

-$9.31M

Previous: -$15.4M+39.8%
Free Cash Flow

$32.5M

Previous: $30.9M+5.3%
Net Income

$41.9M

Previous: $46.3M-9.7%
Operating Income

$58.1M

Previous: $74.2M-21.7%
Gross Profit

$458M

Previous: $469M-2.4%
Cash & Equivalents

$376M

Previous: $361M+4.1%
Total Assets

$1.79B

Previous: $1.79B+0.2%
Stock-Based Comp

$4.87M

Previous: $3.59M+35.5%

Revenue & EPS history

Nu Skin · Revenue · Quarterly

$612M

Q2 2020-1.8%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Nu Skin · $449M total across 2 segments · Q3 2023

  • Total Nu Skin
    $438M
  • Rhyz Other
    $10.8M+1909.9%

Forward guidance

The company anticipates revenue of $605 to $635 million for Q3 2020, which includes 1 to 2 percent unfavorable foreign currency impact, and earnings per share of $0.78 to $0.88. The company is raising its 2020 revenue guidance to $2.37 to $2.45 billion, which reflects a negative foreign currency impact of 2 to 3 percent, and anticipates annual earnings per share of $2.85 to $3.10.

Tailwinds

  • Improved productivity of sales leaders is driving strong customer growth.
  • Sales force expansion as we move toward the introduction of our ageLOC Boost device and Nutricentials Bioadaptive Skin Care in the second half.
  • Expansion of socially enabled business around the world with the release of our latest digital tool, Vera, a personal product recommendation app.

Headwinds

  • 1 to 2 percent unfavorable foreign currency impact in Q3 2020 revenue guidance.
  • Negative foreign currency impact of 2 to 3 percent in 2020 revenue guidance.

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 Q2 2020

Historical avgQ2 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