This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nu Skin Enterprises, Inc. (NUS): Analyst Vs Analyst

Stocks in this article: NUS

Nu Skin Enterprises, Inc. NYSE:NUS posted a big earnings miss on Wednesday, and analysts are taking a wait and see approach, while others are charging ahead. In other words, the bulls are still quite bullish in spite of the results, while the bears have even more reason to be bearish.

Nu Skin sales worsen in China

In a note dated Aug. 5, 2014, Canaccord Genuity analysts Mark Sigal and Scott Van Winkle maintained their Hold rating on Nu Skin. They note that the company actually missed its guidance for earnings per share by about 10%, posting $1.13 per share. Management had guided for earnings of around $1.25 per share. The company reported $650 million in revenue, compared to management's guidance of $700 million.

According to, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Mark Sigal has a total average return of -25.8% and a 0.0% success rate. Sigal is ranked #3054 out of 3206 analysts.

Of course China was the big problem in Nu Skin's earnings results. Sales in the Greater China region were $230 million, which was about 25% below the Canaccord Genuity estimate. That marked another 18% sequential deceleration and a 12% year over year decline. In addition, Nu Skin reported softening distributor metrics, posting an additional 16% sequential decline in active distributor and sales leader counts. The company did halt recruitment for some time due to an investigation by the Chinese government. The analysts note that in the other regions, the company did show consistent and modestly favorable results.

Nu Skin's guidance for the second half also wasn't great. The company guided for earnings per share that are about 30% below the Canaccord Genuity team's estimate. The full year estimate was about 20% under their estimate of $5.10, which was already one of the lowest estimates on Wall Street. The analysts said they're waiting for more visibility on the resumption of distributor activity in China before becoming more constructive on Nu Skin.

Still looking for Nu Skin's dawn

In another note dated Aug. 6, Deutsche Bank analysts Bill Schmitz and Faiza Alwymaintained their Buy rating and $70 per share price target on Nu Skin. They still see a bright future ahead for the company, but they say that for now, difficult comparisons and regulatory overhang are still weighing on the company's shares. They note of course that the worst problems are in China now, as the company must work through extra inventory there and refinance its debt in a way that is shareholder friendly. They're not giving up though because next year will hold easier comparisons for the company.

According to, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Bill Schmitz has a total average return of 4.4% and a 71.1% success rate. Schmitz has a -8.0% average return when recommending NUS, and is ranked #1023 out of 3206 analysts.

The Deutsche Bank team says "the pain trade is sticking around" but that they still think Nu Skin has better days in China ahead of it. They cited "innovation pipeline, high touch, assisted sale model and compelling distributor earnings" as being positive drivers heading into next year's easier comparisons.

NUS Chart Nu Skin Enterprises

Nu Skin Enterprises

The post Nu Skin Enterprises, Inc. NUS: Analyst Vs Analyst appeared first on ValueWalk.

-By TipRanks

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs