Yahoo Finance Why USANA (USNA) Shares Are Plunging Today
What Happened:
Shares of health and wellness products company USANA Health Sciences (NYSE:USNA) fell 10.6% in the morning session after the company reported second-quarter earnings results: its full-year earnings forecast missed analysts' expectations, and its EPS missed Wall Street's estimates. Notably, the full year guidance was dropped from $885 million to $865 million at the midpoint. The company called out macro challenges, which mostly impacted the rate of customer addition and sales momentum. Overall, this quarter could have been better.
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What is the market telling us:
USANA's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. Moves this big are very rare for USANA and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 3 months ago, when the stock gained 11.5% on the news that the company reported first-quarter results with revenue narrowly exceeding Wall Street's expectations, though EPS beat by a more convincing amount. The topline benefitted from sales incentives in mainland China, which drove active customer growth. However, the company noted that other key markets did not meet internal expectations. In addition, its gross margin and full-year revenue guidance were underwhelming. Overall, this quarter's results were mixed.
USANA is down 17.5% since the beginning of the year, and at $44.94 per share it is trading 33.8% below its 52-week high of $67.92 from July 2023. Investors who bought $1,000 worth of USANA's shares 5 years ago would now be looking at an investment worth $713.35.
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