Yahoo Finance Earnings Miss: Nature's Sunshine Products, Inc. Missed EPS By 29% And Analysts Are Revising Their Forecasts
There's been a notable change in appetite for Nature's Sunshine Products, Inc. (NASDAQ:NATR) shares in the week since its quarterly report, with the stock down 18% to US$15.62. Statutory earnings per share fell badly short of expectations, coming in at US$0.12, some 29% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$111m. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Nature's Sunshine Products
Taking into account the latest results, Nature's Sunshine Products' one analyst currently expect revenues in 2024 to be US$455.8m, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 18% to US$0.72 in the same period. Before this earnings report, the analyst had been forecasting revenues of US$467.9m and earnings per share (EPS) of US$0.84 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The analyst made no major changes to their price target of US$23.00, suggesting the downgrades are not expected to have a long-term impact on Nature's Sunshine Products' valuation.
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 highlight that Nature's Sunshine Products' revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2024 being well below the historical 4.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Nature's Sunshine Products is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Nature's Sunshine Products going out as far as 2025, and you can see them free on our platform here.
You can also see our analysis of Nature's Sunshine Products' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
