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Fly News Breaks for July 3, 2019
USNA, NUS
Jul 3, 2019 | 05:16 EDT
Nu Skin Enterprises (NUS) competitor Usana last night announced preliminary Q2 results with sales 17% below consensus and the company also lowered full year sales and earnings guidance 16% and 25%, respectively, at the midpoint, Stifel analyst Mark Astrachan tells investors in a research note. Usana's downside is largely due to softer than expected sales in China, which the company expects will continue throughout 2019, the analyst adds. He points out that increased promotional activity in China did not generate meaningful sales and customer growth. Astrachan says this is consistent with the risks noted in his downgrade of Nu Skin shares to Sell. The analyst is now more cautious on China and keeps a Sell rating on Nu Skin shares with a $45 price target.
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