Analysts Just Shaved Their Nu Skin Enterprises, Inc. (NYSE:NUS) Forecasts Dramatically
Today is shaping up negative for Nu Skin Enterprises, Inc. (NYSE:NUS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the downgrade, the consensus from three analysts covering Nu Skin Enterprises is for revenues of US$1.8b in 2024, implying a discernible 7.9% decline in sales compared to the last 12 months. Per-share earnings are expected to jump 473% to US$0.99. Prior to this update, the analysts had been forecasting revenues of US$2.0b and earnings per share (EPS) of US$2.15 in 2024. Indeed, we can see that the analysts are a lot more bearish about Nu Skin Enterprises' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for Nu Skin Enterprises
It'll come as no surprise then, to learn that the analysts have cut their price target 26% to US$15.50.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's the idea that Nu Skin Enterprises' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 7.9% to the end of 2024. This tops off a historical decline of 4.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.1% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Nu Skin Enterprises to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Nu Skin Enterprises analysts - going out to 2025, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
