Benzinga | Feb 10, 2021 11:00AM EST

Earnings Preview: Nu Skin Enterprises

On Thursday, February 11, Nu Skin Enterprises (NYSE:NUS) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Nu Skin Enterprises modeled for quarterly EPS of $1.19 on revenue of $749.73 million. Nu Skin Enterprises EPS in the same period a year ago totaled $0.72. Revenue was $583.36 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 65.28%. Sales would be have grown 28.52% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.98 0.62 0.25 0.72EPS Actual 1.08 0.81 0.36 0.72Revenue Estimate 689.58 M 583.95 M 480.83 M 582.02 MRevenue Actual 703.35 M 612.37 M 518.03 M 583.36 M

Stock Performance

Over the last 52-week period, shares are up 108.26%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Nu Skin Enterprises is scheduled to hold the call at 17:00:00 ET and can be accessed here.