What Happened?
Shares of health and wellness products company USANA Health Sciences (NYSE: USNA) jumped 12.4% in the afternoon session after reporting strong second-quarter financial results that surpassed analyst expectations and reaffirming its full-year outlook.
The health and wellness products company announced net sales of $236 million, an 11% increase compared to the same period last year and ahead of the $225.2 million analysts had forecasted. Adjusted earnings per share came in at $0.74, significantly beating the consensus estimate of $0.54. While the company's net income saw a slight dip, the robust top-line growth and better-than-expected profitability appeared to fuel investor optimism. USANA also reiterated its fiscal 2025 guidance, projecting consolidated net sales between $920 million and $1.0 billion. Management noted that the business performed in line with expectations, supported by a new commercial strategy for its direct sales business. The company also highlighted strong growth in its Hiya direct-to-consumer business.
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What Is The Market Telling Us
USANA’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for USANA and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 10.6% on the news that the company reported second-quarter earnings results: its full-year earnings forecast missed analysts' expectations, and its EPS missed Wall Street's estimates. Notably, the full year guidance was dropped from $885 million to $865 million at the midpoint. The company called out macro challenges, which mostly impacted the rate of customer addition and sales momentum. Overall, this quarter could have been better.
USANA is down 3.3% since the beginning of the year, and at $35.19 per share, it is trading 23.4% below its 52-week high of $45.96 from July 2024. Investors who bought $1,000 worth of USANA’s shares 5 years ago would now be looking at an investment worth $422.14.
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