USANA Health Sciences, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, USANA Health Sciences, Inc. (NYSE:USNA) last week released its latest second-quarter, and things did not turn out so great for shareholders. USANA Health Sciences missed earnings this time around, with US$213m revenue coming in 3.7% below what the analysts had modelled. Statutory earnings per share (EPS) of US$0.54 also fell short of expectations by 17%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on USANA Health Sciences after the latest results.

View our latest analysis for USANA Health Sciences

Following last week's earnings report, USANA Health Sciences' twin analysts are forecasting 2024 revenues to be US$862.3m, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 14% to US$2.50 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$883.7m and earnings per share (EPS) of US$2.78 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 14% to US$48.00.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 2.9% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 4.3% annually 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 6.5% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect USANA Health Sciences to suffer worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for USANA Health Sciences. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of USANA Health Sciences' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for USANA Health Sciences (1 doesn't sit too well with us) you should be aware of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com