USANA Health Sciences (USNA) Tops Q1 EPS by 40c, Revenues Beat; Offers FY20 EPS/Revenue Mid-Point Guidance Above Consensus

USANA Health Sciences (NYSE: USNA) reported Q1 EPS of $1.23, $0.40 better than the analyst estimate of $0.83. Revenue for the quarter came in at $266.6 million versus the consensus estimate of $240.68 million.

“During this unprecedented period, we extend our gratitude to medical personnel, health officials, government leaders and volunteers around the world who are working tirelessly to respond to the COVID-19 pandemic,” said Kevin Guest, Chief Executive Officer. “The health, wellness and safety of our employees, Associates and customers around the world remain our top priorities. Accordingly, we have modified our go-to-market strategies and operations in each of our markets to comply with guidelines from government and health officials. The most significant modifications we have made relate to positioning the majority of our employees to work from home and supporting our sales force to enhance their ability to run their businesses virtually through social media and conference calling platforms. Although these modifications, and COVID-19 in general, negatively impacted our business during the quarter, strong consumer demand for our high-quality, essential, health products and successful promotions helped us deliver operating results moderately ahead of our expectations.”

“Importantly, our manufacturing facilities in the U.S. and China remain fully operational to date, and we have experienced no meaningful disruptions to our world-wide supply chain. While we have always maintained high standards for safety and sanitation in manufacturing, we have raised those standards with additional measures — including body temperature monitoring, social distancing, and mandatory use of face masks — that are now recommended by government health agencies. Moreover, in certain markets we have temporarily closed product will-call centers and are instead offering curbside delivery and subsidized shipping to customers.”

GUIDANCE:

USANA Health Sciences sees FY2020 EPS of $4.00-$4.90, versus the consensus of $4.01. USANA Health Sciences sees FY2020 revenue of $1-1.08 billion, versus the consensus of $1.01 billion.

“Net sales guidance has been adjusted to reflect an unfavorable shift in currency exchange rates by an estimated $25 million, as well as an adjustment to reflect our current assessment of future sales,” added Mr. Hekking. “As a result of a lower effective tax rate (32.0%) and a lower diluted share count (21.1 million shares), diluted earnings per share changed modestly from previously issued guidance.”

For earnings history and earnings-related data on USANA Health Sciences (USNA) click here.

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