Siebel, Thomas M, CEO of C3.ai, sells $7.6m in stock
Investing.com -- Shares of USANA Health Sciences (NYSE:USNA) fell sharply by 15% as the company’s full-year earnings guidance for fiscal year 2025 disappointed investors. Despite surpassing analyst expectations for Q4 EPS and revenue, the forecasted earnings range of $2.35-$3.00 per share fell short of the consensus estimate of $2.87. Additionally, the projected revenue of $920-1000 million for FY2025 merely bracketed the consensus estimate of $934.5 million.
The fourth quarter results, which included a week of operating results from the newly acquired Hiya Health Products, showed a mixed performance. USANA reported Q4 EPS of $0.64, which was $0.15 higher than the analyst estimate of $0.49. Quarterly revenue also exceeded expectations at $214 million against the predicted $208.84 million. However, when compared to the same quarter last year, both net sales and net earnings saw a decline, with net sales dropping from $221 million to $214 million, and net earnings plummeting from $16.8 million to $4.5 million.
The company’s year-over-year financials further highlighted the challenges faced, with net sales for FY2024 down 7% to $855 million from $921 million in FY2023. Net earnings saw a significant drop of 34%, falling from $63.8 million in the previous year to $42.0 million. Diluted EPS also decreased by the same percentage, from $3.30 to $2.19.
USANA’s President and CEO, Jim Brown, noted that the fourth quarter results exceeded internal expectations and cited positive momentum in the Americas & Europe region. However, he acknowledged the cautious consumer sentiment in key Asia Pacific markets that made it difficult to attract new customers. Brown expressed confidence in the company’s ability to build on the current performance in 2025 and highlighted the completion of the Hiya acquisition as a meaningful milestone.
Looking ahead, USANA’s growth strategy for 2025 is focused on supporting its Associate sales force and rolling out new initiatives aimed at long-term growth. The company’s guidance for the next fiscal year includes net sales growth of 8% - 17% and net earnings between $29 million and $41 million, with an effective tax rate of 41.5% to 45.0%.
The outlook for USANA’s business reflects net sales of $775 to $840 million, including an expected unfavorable currency exchange rate impact. Hiya’s contribution to net sales is projected to be between $145 and $160 million. The company’s CFO, Doug Hekking, emphasized the inclusion of additional non-GAAP financial metrics to provide transparency and comparability following the Hiya acquisition.
Investors reacted to the guidance with concern, as the stock’s significant drop indicates uncertainty about USANA’s ability to achieve the forecasted growth amid a challenging market environment.
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