What happened

Shares of Nu Skin Enterprises (NYSE:NUS) were dropping on Friday as the beauty-products company turned in another disappointing earnings report. As of 10:59 a.m. EST, the stock was down 11.8%.

So what

Revenue at Nu Skin fell 7.1% to $531.3 million, short of the $553.2 million estimate, while adjusted earnings per share improved from $0.62 to $0.79, but that also missed estimates by a penny. CEO Truman Hunt said revenue declined in part due to $50 million in revenue from a product launch in the year ago quarter, and also said it was affected by $7 million in deferred revenue due to orders outstripping supply for a new product.

A family sits on a dock looking out over the water.

Image source: Nu Skin Enterprises.

While the company seems to have put the earlier Chinese pyramid-selling scandal behind it, revenue growth continues to be elusive as it fell 2% over 2016.

Now what

Looking to 2017, the company said it expected constant-currency revenue growth of 4% to 6%. On the bottom line, the company maintained its EPS guidance at $3.10 to $3.25, which factors in 3% to 4% of negative foreign currency impact. That compares with analyst expectations of $3.17 in EPS for the current year and revenue growth of 2.7%, which does not adjust for revenue.

Based on Nu Skin's current P/E valuation of about 16, the stock looks reasonable after Friday's sell-off. I wouldn't change my investing thesis based on Friday's news.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.