Shares of Nu Skin Enterprises Inc. (NYSE:NUS) were looking attractive today after the beauty and skin-care company turned in better-than-expected results in its second-quarter earnings report. As a result, the stock was up 12.8% as of 11:56 a.m. EDT.
The multilevel marketer posted strong top-line growth as revenue increased 28% to $704.2 million, surging past analyst expectations at $641.4 million. Nu Skin's customer count rose 8% in the quarter to 1,148,000, and its sales force increased 21% to 71,000. Revenue growth was particularly strong in mainland China, the company's biggest market, where sales increased 43% (or 33% in constant currency), to $245.3 million.
On the bottom line, earnings per share increased from $0.77 to $0.90, though they would have reached $1.08, accounting for currency exchange and a special accounting charge. That compared to analyst estimates of $0.90.
CEO Ritch Wood said: "We continue to successfully execute on our customer growth strategy centered on engaging platforms, enabling products, and empowering programs, which led to accelerated growth. We are also pleased with the solid performance of our acquired businesses, which we anticipate will show increased benefits in our future results."
The company closed on its acquisition of LifeGen Technologies, a maker of anti-aging products, last year for $11.7 million.
The company also hiked its full-year guidance. It now sees full-year revenue growth of 15% to 17%, to a range of $2.63 billion to $2.67 billion, up from a prior range of $2.51 billion to $2.56 billion. And it expects adjusted EPS of $3.79 to $3.94, compared to previous guidance of $3.73 to $3.93.
Nu Skin stock plunged in 2014, following a Chinese investigation into its business practices in its biggest market. But after a long slide, the stock has recovered and has actually doubled in the last three years. After its recent round of results, it's clear the company continues to execute and trend in the right direction.