What led USANA Health Sciences, Inc. (NYSE: USNA) stock lower

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USANA Health Sciences, Inc. (NYSE: USNA) stock fell 2.74% on July 21st, 2020 and continued its bearish momentum on 22nd July, 2020 falling over 0.9% (as of 11:18 am GMT-4 ; Source: Google finance) post lower than expected second quarter of FY 20.

During the second quarter, the company has generated about eight percent growth in active customers to 599,000, driven by double-digit customer growth in three-of-our-four regions, including the Americas and Europe region. The company had also continued to successfully execute a virtual sales and operating strategy to deliver the results. This strategy included USANA hosting its first all-virtual Asia Pacific Convention, as well as the facilitation of other technology-based tools that assisted thee Associates in their sales efforts. Further, the company offered several promotions and incentives during the second quarter that benefitted net sales and the overall results. The Company ended the quarter with $227.4 million in cash and cash equivalents and no debt. During the second quarter the Company did not repurchase any shares of common stock and, as of June 27, 2020, there was about $73 million remaining under the current share repurchase authorization.

USNA in the second quarter of FY 20 has reported the adjusted earnings per share of $1.32, while reported the adjusted revenue growth of 1.16 percent to $258.99 million in the second quarter of FY 20.

For fiscal 2020, the company now projects earnings per share to be in a range of $4.70 – $5.25, revised from prior guidance range of $4.00 – $4.90. Consolidated net sales are expected to be in a range of $1.05 billion – $1.10 billion, updated from prior guidance of $1.00 billion – $1.08 billion. The revised diluted earnings per share outlook is on back of savings realized from event and travel costs due to the COVID-19 environment, as well as the success in aligning spending with sales performance. Although the company is managing the cost structure to align with sales and to ensure the Company’s financial flexibility, the company plans to continue making investments to execute the long-term growth strategies and to generate momentum in each of the regions. The company is overall confident in the strength of USANA’s underlying business and the growth strategies it has in place for the remainder of 2020 and beyond.

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