Earnings Miss: Nu Skin Enterprises, Inc. Missed EPS And Analysts Are Revising Their Forecasts

There's been a notable change in appetite for Nu Skin Enterprises, Inc. (NYSE:NUS) shares in the week since its third-quarter report, with the stock down 10% to US$4.28. Revenues fell 5.4% short of expectations, at US$311m. Earnings correspondingly dipped, with Nu Skin Enterprises reporting a statutory loss of US$0.02 per share, whereas the analyst had previously modelled a profit in this period. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Nu Skin Enterprises' sole analyst is for revenues of US$1.40b in 2027. This reflects a modest 6.2% improvement in revenue compared to the last 12 months. Nu Skin Enterprises is also expected to turn profitable, with statutory earnings of US$1.13 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$1.47b and earnings per share (EPS) of US$1.16 in 2027. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for Nu Skin Enterprises

The analyst made no major changes to their price target of US$12.48, suggesting the downgrades are not expected to have a long-term impact on Nu Skin Enterprises' valuation.

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. For example, we noticed that Nu Skin Enterprises' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.0% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 14% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.3% annually. So it looks like Nu Skin Enterprises is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nu Skin Enterprises. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at US$12.48, with the latest estimates not enough to have an impact on their price target.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Nu Skin Enterprises going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Nu Skin Enterprises that you need to take into consideration.

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