USANA Health Sciences, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for USANA Health Sciences, Inc. (NYSE:USNA) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.2% to US$47.10. Revenues were US$228m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.86, an impressive 25% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for USANA Health Sciences

Following last week's earnings report, USANA Health Sciences' dual analysts are forecasting 2024 revenues to be US$890.2m, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 15% to US$2.75 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$889.8m and earnings per share (EPS) of US$2.73 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 13% to US$56.50, suggesting that the analysts might have previously been hoping for an earnings upgrade.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would also point out that the forecast 1.5% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 3.8% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.9% annually. So while a broad number of companies are forecast to grow, unfortunately USANA Health Sciences is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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.

Plus, you should also learn about the 2 warning signs we've spotted with USANA Health Sciences (including 1 which can't be ignored) .

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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.