Why Nu Skin Shares Popped

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 Nu Skin Enterprises (NYSE: NUS  ) were looking refreshed today, gaining as much as 14% today after the company lifted its guidance significantly for the current quarter and full year.

So what: The skin-care and nutritional products maker raised its outlook for the quarter all the way from $0.91-$0.95 a share to $1.20, and said it now expects revenue of about $680 million, or $100 million more than its previous projection. EPS projections for the full year also jumped to $4.85-$5.00 from $4.18-$4.30. CEO Truman Hunt credited "the strong momentum of our business" and particularly last year's ageLOC product launches for the gains.

Now what: Shares of Nu Skin had gotten hammered late last year when fund manager Bill Ackman slammed rival Herbalife, a fellow multilevel marketing company, calling it a "pyramid scheme." However, Nu Skin's recent strong results and last night's update seem to indicate that this company is for real, despite whatever criticisms hedge fund managers may throw out to manipulate market. Nu Skin will report second-quarter earnings on Aug. 1.

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  • Report this Comment On August 05, 2013, at 6:09 PM, toblerone88 wrote:

    Nu Skin is a great company. I'm in Provo, where there HQ is, and they do a lot for the community in addition to a lot of charity work. Between Ackman and some controversial stuff surrounding founder Sandie Tillotson, all of which seems like nonsense. Nu Skin looked in trouble for a hot minute. But the Nu Skin business model is sound and the company is a lot more than a "typical MLM" like Amway. Also there's good people at the helm; Truman Hunt, Blake Roney, Steve Lund. All have great track records. A solid investment imo.

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