USANA Health Sciences Beats Analyst Estimates on EPS

USANA Health Sciences (NYS: USNA) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), USANA Health Sciences met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.

Gross margins improved, operating margins improved, and net margins were steady.

Revenue details
USANA Health Sciences chalked up revenue of $145.9 million. The four analysts polled by S&P Capital IQ hoped for a top line of $144.8 million. Sales were 6.1% higher than the prior-year quarter's $137.5 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.87. The five earnings estimates compiled by S&P Capital IQ predicted $0.86 per share. GAAP EPS of $0.87 for Q4 were 16% higher than the prior-year quarter's $0.75 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 83.1%, 100 basis points better than the prior-year quarter. Operating margin was 13.8%, 60 basis points better than the prior-year quarter. Net margin was 9.0%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $150.8 million. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $610.7 million. The average EPS estimate is $3.51.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 194 members out of 374 rating the stock outperform, and 180 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give USANA Health Sciences a green thumbs-up, and 80 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on USANA Health Sciences is outperform, with an average price target of $37.40.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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