Analysts Just Shaved Their Nu Skin Enterprises, Inc. (NYSE:NUS) Forecasts Dramatically

The latest analyst coverage could presage a bad day for Nu Skin Enterprises, Inc. (NYSE:NUS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the three analysts covering Nu Skin Enterprises provided consensus estimates of US$1.8b revenue in 2024, which would reflect a noticeable 7.9% decline on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 473% to US$0.99. Before this latest update, the analysts had been forecasting revenues of US$2.0b and earnings per share (EPS) of US$2.15 in 2024. Indeed, we can see that the analysts are a lot more bearish about Nu Skin Enterprises' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Nu Skin Enterprises

It'll come as no surprise then, to learn that the analysts have cut their price target 26% to US$15.50.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Nu Skin Enterprises' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 7.9% to the end of 2024. This tops off a historical decline of 4.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.1% per year. So while a broad number of companies are forecast to grow, unfortunately Nu Skin Enterprises is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Nu Skin Enterprises. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Nu Skin Enterprises.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nu Skin Enterprises analysts - going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.