Nu Skin Enterprises (NYSE:NUS) was a scorching-hot stock on Thursday, climbing up by nearly 25% in late afternoon trading. Not coincidentally, it released a guidance update after market close the previous day that revealed a higher than anticipated top-line figure.
Make that much higher than anticipated. Nu Skin now believes it will book roughly $603 million to $608 million in revenue for its just-completed second quarter of fiscal year 2020, quite some distance above its previous forecast of $520 million to $550 million.
The company attributed the vastly more optimistic outlook to "strong global customer growth with particular strength in the Americas and Europe." It also pointed to its investments in the digital sphere; during the quarter, online orders comprised over 80% of total sales volume.
The company did not provide any profitability estimates. The company also did not modify its full-year 2020 guidance, which like the previous Q2 outlook was proffered in Nu Skin's first-quarter results release in May. For 2020, it anticipates booking $2.17 billion to $2.26 billion on the top line, netting $2.05 to $2.35 per share in net profit.
We'll see how prophetic Nu Skin is when it releases the actual Q2 results on Aug. 5. On that date after market close, the company has promised, it will also present updated full-year 2020 guidance. Investors will be keenly interested in the new forecasts.