Why Nu Skin (NUS) Is Tumbling on Monday

NEW YORK (TheStreet) -- Nu Skin (NUS) is tumbling on Monday after issuing lower-than-expected guidance for the three months to March.

By late morning, shares had taken off 7.3% to $77.40.

The cosmetics direct-seller cut its first-quarter revenue guidance to between $650 million and $670 million. Analysts surveyed by Thomson Reuters had anticipated total sales of $732.19 million.

Projected net income of 90 cents to 94 cents a share came in short of consensus for $1.20 a share.

"The decrease in projected revenue versus our first-quarter guidance provided last November is primarily a result of the recent measures we have taken in China, slightly lower than anticipated revenue increases in other markets, and an anticipated impact of about $20 million associated with the reclassification of a small percentage of selling expenses. In addition, our first-quarter revenue guidance anticipates a 4 percent negative impact from foreign currency fluctuations," said CFO Ritch Wood in a statement.

Also See: Nu Skin Announces Dividend Increase

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TheStreet Ratings team rates NU SKIN ENTERPRISES as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate NU SKIN ENTERPRISES (NUS) a BUY. This is driven by some important positives, 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. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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