Why Nu Skin Shares Surged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of anti-aging products company Nu Skin Enterprises popped 13% today after its quarterly results and outlook topped Wall Street expectations.
So what: The stock has skyrocketed in 2013 on better-than-expected growth, and today's third-quarter results -- earnings more than doubled on a revenue spike of 76% -- coupled with upbeat guidance suggest that things aren't slowing. In fact, Nu Skin saw particularly strong sales for its newly launched ageLOC TR90 weight management system, giving investors plenty of good vibes over the stock's trajectory going forward.
Now what: Management now sees full-year EPS of $5.77 to $5.82 on revenue of $3.18 billion to $3.21 billion, well ahead of Wall Street's view of $5.17 and $2.95 billion. "Our sales force has built strong consumer demand for our ageLOC TR90 system, with a very positive initial response to our product release," said CEO Truman Hunt. "We continue to improve our execution as we strategically develop and launch innovative products, ensuring a vibrant business opportunity for our sales leaders." Of course, with Nu Skin shares now up a whopping 200% year to date and trading at a 20-plus price-to-cash flow multiple, much of that momentum might already be baked into the price.
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The article Why Nu Skin Shares Surged originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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