USANA Health Sciences reports higher Q3 profit
USANA Health Sciences, Inc. (Nasdaq: USNA) shares are down after the nutrition and personal care products maker and multi-level marketer announced after Tuesday’s closing that its third-quarter earnings beat Wall Street estimates, but revenue missed projections.
The Salt Lake City-based firm reported third-quarter income of $11.7 million, or $0.70 per share, above estimates of $0.68 per share and up from $10.4 million, or $0.56 per share, a year earlier. Revenue for the three months ended Sept. 29 rose to $106.2 million, slightly below analyst projections of $106.4 million and compared with $92 million during the same period of 2006.
"We are pleased to have achieved double-digit growth in the number of active associates and in net sales in the North American region," Dave Wentz, USANA’s president, said in a statement. "Both the Canadian and Mexican markets have contributed to this region's strong sales growth."
During the third quarter, net sales in the Asia Pacific region increased 25.7% to $39.6 million, compared with the third quarter of the prior year.
"The Asia Pacific region continues to be a healthy market for USANA," Wentz said. "This region has been contributing an increasing share of our growth, led by Hong Kong and Australia-New Zealand, and we anticipate that the Malaysian market will play an increasingly important role in this region. We continue to focus the majority of our efforts on solidifying and growing our 13 core markets."
USANA says it expects net sales for the fourth quarter to be in the range of $108 million to $110 million, compared with analyst expectations of $111.96 million. The firm expects earnings of between $0.66 and $0.68 per share for the fourth quarter, compared with Wall Street estimates of $0.68 per share.
The company also announced this morning that it was determined to comply with Nasdaq listing standards. The Nasdaq Listing Qualifications Panel ruled that USNA shares will continue to be listed on the Nasdaq stock market.
“The Nasdaq Panel considered the entire record before it, including materials related to adverse publicity directed against USANA, and the resignation of our former accounting firm. The Panel specifically recognized that USANA’s Audit Committee completed an investigation of the allegations made by third-party detractors, and that the Audit Committee found no merit to them,” CFO Gilbert Fuller said in a statement.
In today’s trading, USNA shares were down 9.51%, or $4.35, at $41.40. Over the last 52 weeks, shares have ranged from $28.51 to $61.80.
