NEW YORK (TheStreet) -- Nu Skin
(NUS) stock is slipping in premarket trading after second-quarter guidance came in below expectations.
Before the bell, shares had dropped 3.5% to $84.51.
The beauty products retailer said it expects revenue of around $700 million and net income of $1.25 a share over the three months to June. Analysts surveyed by Thomson Reuters had forecast $789.5 million and $1.43 a share.
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The lower guidance comes as business operations in China have resumed, following an investigation into its direct-selling practices.
"Because we are only a few days into the recommencement of promotional activities in China
, it is difficult to forecast how the business will perform," said CFO Ritch Wood in a statement.
TheStreet Ratings team rates NU SKIN ENTERPRISES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NU SKIN ENTERPRISES (NUS) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
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