NEW YORK (AP) -- Shares of Nu Skin surged nearly 10 percent Thursday after the company said that it expects fourth-quarter results will easily top Wall Street's expectations.
THE SPARK: On Wednesday Nu Skin, which makes and distributes anti-aging skin-care products and nutrition supplements, said it expects quarterly earnings of 94 cents to 96 cents per share. Revenue is forecast to come in at about $588 million.
Analysts surveyed by FactSet had expected earnings of 83 cents per share on revenue of $530.3 million.
The company is expected to report its fourth-quarter results Feb. 6.
THE ANALYSIS: Mark Astrachan of Stifel Nicolaus said in a client note that Nu Skin's strong quarterly performance probably results from ongoing strong sales driven by new distributor growth in developing markets.
The analyst said that the company's stock was likely to rise on the outlook, given how much it beat Wall Street's view by and the recent underperformance of the stock.
Astrachan reiterated a "Buy" rating and $53 price target.
SHARE ACTION: Nu Skin Enterprises Inc.'s stock rose $4.19, or 9.9 percent, to $46.69 in midday trading. The shares have traded in a 52-week range of $32.36 to $62.02.
- Investment & Company Information
- Nu Skin