NYSE$USNA

USANA Health Sciences Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

USANA's financial performance declined due to COVID-related disruptions and a tough year-over-year comparison.

USANA Health Sciences reported a decrease in net sales and diluted EPS for the second quarter of 2022, primarily due to COVID-related disruptions in key markets, including mainland China. The company is reiterating its fiscal year 2022 outlook for net sales and diluted EPS.

  • Second quarter net sales were $264 million, compared to $337 million in the prior year.
  • Diluted EPS for the second quarter totaled $1.00, versus $1.87 in the second quarter of 2021.
  • The company is reiterating its fiscal 2022 net sales outlook of $1.015 billion to $1.065 billion.
  • The company is reiterating its fiscal 2022 diluted EPS outlook of $3.85 to $4.45.

Headline financials

Total Revenue

$264M

Previous: $337M-21.5%
EPS (adj)

$1.00

Previous: $1.87-46.5%
Direct Selling Active Customers

559.0K

No prior period
Capital Expenditures

-$3.54M

Previous: -$3.15M-12.4%
Free Cash Flow

$15.6M

Previous: $35.1M-55.5%
Net Income

$19.2M

Previous: $38.2M-49.9%
Operating Income

$29.4M

Previous: $53.7M-45.3%
Gross Profit

$215M

Previous: $280M-23.2%
Cash & Equivalents

$230M

No prior period
Total Assets

$558M

No prior period
Stock-Based Comp

$3.56M

No prior period

Revenue & EPS history

USANA · Revenue · Quarterly

$264M

Q2 2022-21.5%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

USANA anticipates a challenging operating environment in the second half of the year, impacted by a lower-than-anticipated Active Customer base. Despite these challenges, they remain committed to their business objectives and will align their cost structure with sales performance.

Tailwinds

  • The company is committed to its business strategy to deliver sustained, long-term growth.
  • The company is enhancing digital experience for customers.
  • The company is improving Associate onboarding and training.
  • The company is exploring additional promotions and incentives on a market-specific basis.
  • The company is launching experience centers in mainland China.

Headwinds

  • The company continues to experience COVID-related disruptions in several key markets, including mainland China.
  • The company faced a tough year-over year comparable due to the timing of a successful sales program in 2021.
  • The company believes it will continue to face a challenging operating environment in the second half of the year.
  • The company has a lower-than-anticipated Active Customer base.
  • COVID-related disruptions and inflationary pressures remain difficult.

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 2022

Historical avgQ2 2022

+2.3%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+1.6%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+39.2%

Q2 2015

Best reaction

-24.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-9.7%-7.0%
Q3 2025-1.6%-2.8%-6.0%
Q2 2025+4.1%+0.8%+1.5%
Q1 2025+4.9%+13.6%+21.4%
Q4 2024+3.9%-6.2%-13.1%
Q3 2024+4.4%+5.0%+12.3%
Q2 2024-3.7%-7.7%-14.6%
Q1 2024+6.0%+6.0%+8.7%
Q4 2023+7.1%+9.6%+4.6%
Q3 2023-16.7%-17.7%-13.8%
Q2 2023+6.5%+2.1%-0.3%
Q1 2023+4.9%+2.5%-4.4%
Q4 2022+4.7%+4.0%+2.4%
Q3 2022-0.2%-3.0%-6.5%
Q2 2022+1.1%+1.4%-0.5%
Q1 2022-3.6%-2.6%-10.4%
Q4 2021-8.4%-5.2%-10.1%
Q3 2021-8.0%-3.4%+1.3%
Q2 2021-2.3%-6.8%-6.9%
Q1 2021-7.7%-6.4%+9.4%
Q4 2020+15.7%+6.3%+16.4%
Q3 2020+5.1%+10.7%-3.5%
Q2 2020-6.4%-12.4%-8.8%
Q1 2020+17.5%+25.2%+23.8%
Q4 2019+25.3%+28.1%+15.7%
Q3 2019+11.5%+4.8%+1.8%
Q2 2019+0.3%+6.1%+5.7%
Q1 2019+9.4%+2.2%-12.9%
Q4 2018-11.4%-6.5%-18.1%
Q3 2018+3.5%+2.7%+13.0%
Q2 2018+23.9%+18.9%+19.0%
Q1 2018+11.6%+10.3%+22.2%
Q4 2017+5.6%+7.0%+14.4%
Q3 2017+12.5%+9.7%+10.1%
Q2 2017-10.0%-11.2%-7.5%
Q1 2017+6.5%+13.4%+16.4%
Q4 2016-11.6%-8.9%-8.9%
Q3 2016-8.2%-11.5%-13.6%
Q2 2016+11.6%+8.2%+8.4%
Q1 2016+6.2%
Q4 2015-24.1%
Q3 2015-11.6%
Q2 2015+39.2%
Q1 2015+19.2%
Q4 2014-6.6%
Q3 2014+26.5%
Q2 2014-7.8%
Q1 2014-15.2%
Q4 2013+18.8%
Q3 2013-9.6%
Q2 2013-13.3%
Q1 2013+8.1%
Q4 2012+5.8%
Q3 2012+1.7%
Q2 2012+5.4%
Q1 2012+2.0%
Q4 2010-4.2%
Q4 2011-4.2%
Q3 2011-5.4%
Q2 2011-0.3%
Q1 2011-0.3%
Q3 2010-2.0%
Q2 2010+4.3%
Q1 2010+4.0%

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