Nature's Sunshine Products, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
It's been a good week for Nature's Sunshine Products, Inc. (NASDAQ:NATR) shareholders, because the company has just released its latest annual results, and the shares gained 9.5% to US$19.62. Revenues were US$445m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.77, an impressive 64% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
See our latest analysis for Nature's Sunshine Products
Following the latest results, Nature's Sunshine Products' lone analyst are now forecasting revenues of US$467.9m in 2024. This would be an okay 5.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.9% to US$0.84. In the lead-up to this report, the analyst had been modelling revenues of US$464.3m and earnings per share (EPS) of US$0.73 in 2024. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.
The consensus price target rose 12% to US$24.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 5.1% growth on an annualised basis. That is in line with its 4.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.3% per year. So it's pretty clear that Nature's Sunshine Products is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nature's Sunshine Products' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Nature's Sunshine Products. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Nature's Sunshine Products going out as far as 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nature's Sunshine Products that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
