NYSE$USNA

USANA Health Sciences Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net sales and diluted EPS decreased due to challenging economic conditions and lower promotional activity.

USANA Health Sciences reported a decrease in net sales and diluted EPS for the third quarter of 2023, attributed to challenging economic conditions and reduced promotional activities. The company is narrowing its fiscal year 2023 net sales and diluted EPS outlook.

  • Third quarter net sales were $213 million, a decrease from $233 million in Q3 2022.
  • Third quarter diluted EPS was $0.59, compared to $0.78 in Q3 2022.
  • The company is finalizing plans to commence operations in India and anticipates opening this market prior to year-end.
  • The company generated $22 million in operating cash flow and ended the quarter with $307 million in cash and cash equivalents.

Headline financials

Total Revenue

$213M

Previous: $233M-8.5%
EPS (adj)

$0.59

Previous: $0.78-24.4%
Direct Selling Active Customers

464.0K

Previous: 474.0K-2.1%
Capital Expenditures

-$7.17M

Previous: -$7.12M-0.8%
Free Cash Flow

$4.18M

Previous: $7.81M-46.5%
Net Income

$11.3M

Previous: $14.9M-24.0%
Operating Income

$17.6M

Previous: $22.6M-22.2%
Gross Profit

$171M

Previous: $187M-8.5%
Cash & Equivalents

$307M

Previous: $247M+24.4%
Total Assets

$601M

Previous: $556M+8.1%
Stock-Based Comp

$3.67M

Previous: $3.08M+19.3%

Revenue & EPS history

USANA · Revenue · Quarterly

$213M

Q3 2023-8.5%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

The Company is revising its net sales and earnings per share outlook for fiscal year 2023, as follows: Consolidated Net Sales $900 - $920 million and Diluted EPS $2.80 - $3.05.

Tailwinds

  • The company plans to continue to invest in and execute key strategies going forward.
  • The expanding global nutrition category and consumers’ increased focus on health and wellness provide a compelling opportunity.
  • The company hosted a successful Americas and Europe convention in Salt Lake City.
  • Plans to commence operations in India prior to year-end.
  • The company remains committed to managing costs in line with expected sales performance.

Headwinds

  • Inflationary pressures resulted in lower than anticipated top line performance.
  • Lower promotional activity resulted in lower than anticipated top line performance.
  • The strengthening of the US dollar collectively resulted in lower than anticipated top line performance
  • Updated annual effective tax rate estimate negatively impacted third quarter EPS by approximately $0.10 per share.
  • Continued pressure from unfavorable foreign currency exchange rates.

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 Q3 2023

Historical avgQ3 2023

+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%

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