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Nature's Sunshine Products, Inc. (NASDAQ:NATR) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of US$113m, some 3.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.25, 52% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Nature's Sunshine Products' two analysts are forecasting 2025 revenues to be US$459.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 41% to US$0.78. Before this earnings report, the analysts had been forecasting revenues of US$460.0m and earnings per share (EPS) of US$0.77 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Nature's Sunshine Products
With no major changes to earnings forecasts, the consensus price target fell 10% to US$20.00, suggesting that the analysts might have previously been hoping for an earnings upgrade.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Nature's Sunshine Products' revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2025 being well below the historical 3.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nature's Sunshine Products.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nature's Sunshine Products' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Nature's Sunshine Products' future valuation.