USANA Health Sciences (NYSE: USNA) reported Q2 EPS of $1.36, $0.23 better than the analyst estimate of $1.13. Revenue for the quarter came in at $301.5 million versus the consensus estimate of $284.54 million.

“Our operating results for the second quarter exceeded our expectations and reflect the momentum we are seeing in most of our regions. This momentum helped us generate the highest quarterly revenue and earnings per share in the Company’s history,” said Kevin Guest, Chief Executive Officer. “Although the strengthening of the U.S. dollar will be a challenge during the second half of the year, we are positioned to deliver additional sales growth as we host our International Convention in Salt Lake City, launch Celavive in China, and hold our Chinese national meeting in Macau.”

Outlook

The Company is updating its outlook for 2018 as follows:

• Consolidated net sales between $1.17 and $1.20 billion, previously between $1.13 and $1.17 billion; and
• Earnings per share between $4.75 and $5.05, previously between $4.25 and $4.55.

The Company’s full-year outlook reflects:

• A year-over-year benefit to net sales of approximately $29 million from favorable currency exchange rates, which was previously estimated at $45 million;
• An estimated operating margin between 15.0% and 15.5%;
• An effective tax rate of approximately 34%; and
• An annualized diluted share count of approximately 24.8 million.

Chief Financial Officer, Doug Hekking, commented, “Given our results for the first six months of the year and our forecast for the remainder of the year, we are raising our outlook for fiscal 2018. Although favorable currency exchange rates benefited our operating results in the first half of 2018, we saw the U.S. dollar strengthen during the quarter and expect it to continue to strengthen during the remainder of 2018. Consequently, we have significantly reduced the estimated benefit to net sales from currency for the full year. Additionally, we plan to continue investing in our business during the second half of 2018, while also leveraging the investments we have made over the last several years.”

GUIDANCE:

USANA Health Sciences sees FY2018 EPS of $4.75-$5.05. USANA Health Sciences sees FY2018 revenue of $1.17-1.2 billion.

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