Nu Skin Enterprises, Inc. Rises On Share Buybacks, Starbucks Falls On Guide

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Nu Skin Enterprises, Inc. Rises On Share Buybacks, Starbucks Falls On Guide

Nu Skin and Starbucks released their latest earnings reports after closing bell tonight. Nu Skin posted earnings of 71 cents per share and $571.3 million in revenue. Analysts had been looking for earnings of 84 cents per share and revenue of $571.4 million. In last year’s third quarter, the multi-level marketing firm posted earnings of $1.12 per share and revenue of $638.8 million.

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Starbucks posted earnings of 43 cents per share and $4.9 billion in revenue, both of which were in line with the consensus estimates. In last year’s fourth fiscal quarter, the coffee chain giant posted earnings of 37 cents per share and $4.2 billion in revenue.

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Nu Skin raises share buybacks

Nu Skin said revenue was relatively flat year over year, but foreign currencies had a negative impact of about 10%. Reported earnings were 28 cents per share including a write-down of about 43 cents per share for inventory in China. The company also had about a 13-cent per-share charge related to currency exchange.

Earlier this month, Nu Skin preannounced weak revenue on the back of soft demand in Greater China and currency headwinds. At that time, management updated guidance for revenue to a range of $570 million to $573 million. Problems in China have weighed heavily on Nu Skin as more than 30% of its sales have historically come from the country.

Greater China revenue fell 15% (in constant currency) to $188.665 million, while North Asia revenue fell 6% to $167.75 million. Americas revenue rose 2% to $70.8 million, while Europe, the Middle East, and Africa revenue rose 4% to $35.3 million. Revenue in South Asia and the Pacific region increased 44% to $108.9 million. Mainland China sales fell 8% in constant currency.

Nu Skin also announced that it raised its share repurchase program $260 million. As of this writing, shares of Nu Skin were up 2.52% at $35.75 per share.

Starbucks comparable sales rise

Starbucks’ GAAP earnings were the same as non-GAAP earnings at 43 cents per share. Global comparable store sales rose 8% due to a 4% traffic increase. Comparable store sales in the Americas climbed 8% on the back of a 4% traffic increase. Comparable store sales in Europe, the Middle East, and Africa rose 5% with a 3% traffic increase, and China and the Asia Pacific region recorded a 6% increase in comparable store sales and a 6% increase in traffic. U.S. comparable store sales climbed 9%.

For fiscal 2016, Starbucks noted that there will be an extra week in the fourth quarter. The coffee chain expects global comparable store sales to grow “somewhat above mid-single digits.” For the full year, management expects GAAP earnings of $1.84 to $1.86 per share and non-GAAP earnings of $1.87 to $1.89 per share. For the first quarter, Starbucks expects GAAP earnings of 43 cents to 44 cents and non-GAAP earnings of 44 cents to 45 cents per share.

As of this writing, shares of Starbucks were down 2.64% at $60.85 per share.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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