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Nature's Sunshine Products, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
The analysts might have been a bit too bullish on Nature's Sunshine Products, Inc. (NASDAQ:NATR), given that the company fell short of expectations when it released its quarterly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$117m, statutory earnings missed forecasts by an incredible 56%, coming in at just US$0.11 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Nature's Sunshine Products' two analysts is for revenues of US$503.9m in 2027. This reflects a credible 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 38% to US$1.17. Before this earnings report, the analysts had been forecasting revenues of US$519.2m and earnings per share (EPS) of US$1.23 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
Check out our latest analysis for Nature's Sunshine Products
It'll come as no surprise then, to learn that the analysts have cut their price target 25% to US$23.00.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Nature's Sunshine Products' growth to accelerate, with the forecast 3.9% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nature's Sunshine Products is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nature's Sunshine Products. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Nature's Sunshine Products going out as far as 2028, and you can see them free on our platform here.
You can also see our analysis of Nature's Sunshine Products' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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