USANA Health Sciences Shares Plunge On Q2 Preliminary Results, FY22 Guidance Cut

  • USANA Health Sciences, Inc. USNA shares slid in the post-market session after it reported preliminary second-quarter results and updated its FY22 outlook.
  • USANA anticipates Q2 net sales will be ~$265 million (compared to $337 million in 2Q21). It expects earnings per share of ~$1.05 (compared to $1.87 in 2Q21).
  • “Our sales performance during the second quarter was below expectations, as COVID-related lockdowns, restrictions, and other disruptions continued in mainland China and other markets,” commented Kevin Guest, Chief Executive Officer and Chairman of the Board
  • “As a result of this and the continued uncertainty surrounding the operating environment going forward, we anticipate softer sales and customer counts in the second half of the year,” Guest added.
  • FY22 Outlook: USANA expects net sales of $1.015 billion- $1.065 billion (prior guidance $1.1 billion - $1.2 billion) vs. consensus of $1.13 billion.
  • The company expects EPS of $3.85 - $4.45 (prior guidance $5.00 - $5.70), vs. a consensus of $5.27.
  • “As a result of our first-half performance and outlook for the remainder of the year, we now anticipate net sales between $1.015-$1.065 billion and diluted EPS between $3.85-$4.45.”
  • “Additionally, inflationary pressures have persisted across several areas of our business, and we are continuing to work with our various stakeholders to manage operating expenses accordingly. Despite current challenges, USANA remains very profitable and expects to generate strong cash flow in the fiscal year 2022,” commented Doug Hekking, Chief Financial Officer.
  • Price Action: USNA shares are trading lower by 9.67% at $69.11 during the post-market session on Wednesday.
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