Yahoo Finance USANA Health Sciences, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
USANA Health Sciences, Inc. (NYSE:USNA) investors will be delighted, with the company turning in some strong numbers with its latest results. Statutory revenue and earnings both blasted past expectations, with revenue of US$267m beating expectations by 21% and earnings per share (EPS) reaching US$1.23, some 116% ahead of expectations. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
See our latest analysis for USANA Health Sciences
Following last week's earnings report, USANA Health Sciences' single analyst are forecasting 2020 revenues to be US$1.05b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$4.75, roughly flat on the last 12 months. Before this earnings report, the analyst had been forecasting revenues of US$1.06b and earnings per share (EPS) of US$4.69 in 2020. The consensus analyst doesn't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.7% to US$80.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the USANA Health Sciences' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with the forecast 0.2% revenue decline a notable change from historical growth of 5.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.3% next year. It's pretty clear that USANA Health Sciences' revenues are expected to perform substantially worse than the wider 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 analyst holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that USANA Health Sciences' revenues are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for USANA Health Sciences going out as far as 2021, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with USANA Health Sciences .
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