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SALT LAKE CITY - USANA Health Sciences, Inc. (NYSE:USNA), a health supplements company with a market capitalization of $481 million, announced preliminary third quarter results on Thursday, with expected net sales of approximately $214 million compared to $200 million in the same period last year, while earnings from operations are anticipated to drop to $1.2 million from $15.6 million a year ago. According to InvestingPro analysis, the stock appears undervalued at its current price of $26.25, trading at a modest P/E ratio of 14.6x.
The health supplements company reported that third quarter operating results fell below expectations primarily due to slower-than-expected sales and Brand Partner productivity during the rollout of an enhanced compensation plan. The company also cited softer sales from its direct-to-consumer business, Hiya, which experienced lower than anticipated customer acquisition rates. Despite these challenges, InvestingPro data shows USANA maintains impressive gross profit margins of nearly 80% and holds more cash than debt on its balance sheet. Subscribers can access 9 additional ProTips and comprehensive analysis in the Pro Research Report.
USANA expects to report a net loss of $6.5 million for the quarter, compared with net earnings of $10.6 million in the third quarter of 2024. Diluted loss per share is anticipated at $0.36, versus earnings per share of $0.56 in the year-ago period. The company’s enterprise value to EBITDA ratio stands at 4.55x, suggesting potential value opportunity despite current headwinds.
The company’s effective income tax rate for the quarter rose dramatically to 471%, compared to 43% in the same period last year. USANA explained that lower than expected earnings combined with concentrated operating expenses in the United States resulted in a significant increase in the annual effective tax rate from 45% to 65%.
Looking forward, the company expects full-year sales to be at or near the lower end of its previously issued outlook range, with earnings per share projected to fall below the range. USANA plans to update its outlook in its upcoming earnings release.
Final results for the third quarter are expected to be released after market close on Tuesday, October 21, 2025, according to the company’s statement based on a press release.
In other recent news, USANA Health Sciences reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $0.74, which was a substantial 37.04% above the anticipated $0.54. Revenue also exceeded expectations, reaching $236 million compared to the forecasted $225.2 million, marking a 4.8% surprise. These results reflect strong performance and investor confidence in the company’s financial health. Additionally, analysts and investors closely monitor such earnings and revenue figures as they provide critical insights into the company’s current performance. The positive earnings report positions USANA Health Sciences favorably in the market. These developments highlight the company’s ability to surpass financial forecasts, which is crucial for investor analysis.
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