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Last Update: 06-Feb-13 07:54 ET
Nu Skin shares little changed following earnings beat and downside guidance
Nu Skin (NUS $42.75 -0.24) reported fourth quarter earnings of $0.97 per share, $0.04 better than the Capital IQ consensus of $0.93, while revenues rose 18.8% year/year to $588.2 million versus the $588.14 million consensus. Regional Sales breakdown: North Asia: Fourth-quarter revenue in North Asia was $250.2 million, compared to $204.3 million for the same period in 2011. The region's results were negatively impacted approximately 1 percent by foreign currency fluctuations. Japan local-currency revenue improved 26 percent while South Korea experienced local-currency revenue growth of 19 percent. The number of sales leaders in the region was up 14 percent while the number of actives improved 3 percent. Greater China: In Greater China, fourth-quarter revenue increased 28 percent to $141.7 million, compared to $110.6 million in the prior-year period. Foreign currency fluctuations had a positive impact of 3 percent in the region. The sales leader count in the region improved 57 percent, while the number of actives increased 51 percent compared to the prior-year. South Asia/Pacific: Revenue in South Asia/Pacific was $63.5 million, a 3 percent decline compared to the prior year. Sales in the quarter were positively impacted 4 percent by foreign currency fluctuations. The region's fourth-quarter sales leaders declined 11 percent while actives decreased 1 percent compared to the same period in 2011. Americas: Revenue in the Americas improved 4 percent to $80.1 million, compared to $76.9 million in the prior-year period. Sales in the U.S. increased 18 percent when excluding $12.5 million of convention sales to non-U.S. distributors in the fourth quarter of 2011. The number of sales leaders improved 19 percent while the number of actives decreased 1 percent compared to the prior year. Europe: Revenue in Europe was $52.8 million, a 38 percent improvement over the prior-year period. Results in the region were negatively impacted 6 percent by foreign currency fluctuations. Sales leaders and actives in Europe increased 21 and 9 percent, respectively, compared to the prior year. The company's operating margin was 15.1 percent for the quarter, compared to 15.3 percent in the prior year. Gross margin during the quarter was 83.8 percent, consistent with the prior year.
The company issued downside guidance for the first quarter with EPS of $0.75-0.77, excluding non-recurring items, versus the $0.84 consensus and revenues of $500-510 million versus the $518.87 million consensus. The company issued mixed guidance for fiscal year 2013 with EPS of $3.77-3.92, excluding non-recurring items, versus the $3.97 consensus and revenues of $2.30-2.35 billion versus the $2.33 billion consensus.
The company issued downside guidance for the first quarter with EPS of $0.75-0.77, excluding non-recurring items, versus the $0.84 consensus and revenues of $500-510 million versus the $518.87 million consensus. The company issued mixed guidance for fiscal year 2013 with EPS of $3.77-3.92, excluding non-recurring items, versus the $3.97 consensus and revenues of $2.30-2.35 billion versus the $2.33 billion consensus.
