Nu Skin Enterprises (NUS), a company which develops and distributes anti-aging personal care products and nutritional supplements worldwide, gained over 6% in trade due to re-iterated FY 11 guidance and a better than expected outlook for Q1F11.
The company announced that the Q1F11 revenues will be up 9% (v/s previously guided +4-7%) with currencies growth at 5% (v/s 2-3% guided earlier). The EPS for Q1F11 was raised to $0.52-0.54 from $0.50-0.53 guided earlier. The management also clarified that the negative impact of Japan (~30% of revenues) would be more than offset by the growth in other Asia Pacific markets.
The management expects the sales in Japan to come down by 7%, whereas the China and South Asian markets are expected to clock ~38% growth. The management reiterated EPS range of $2.25-2.35 for the full FY11. The stock is trading at a P/E of ~13x FY11e which is lower than that of its peers. The stock is a good buy at these levels given the positive growth outlook and cash flow situation.
Yes I'm long NUS.
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