Business

The Usana share falls by 10 %after China’s Covid Lockdowns have been held responsible for the reduced forecast

Shares in Usana Health Sciences Inc. fell in Wednesday’s extended session after the dietary supplement distributor lowered its forecast for the year, blaming lockdowns in China for disrupting regional sales programs.

Usana USNA,
+1.78%
The shares fell by 10 % after the trade closed, after they rose by 1.8 % in the regular session and closed at $ 76.51.

The company lowered its earnings guidance for the year to a range of $3.85 to $4.45 per share from a previous guidance of $5 to $5.70 per share. Also, Usana said it expects revenue of between $1.02 billion and $1.07 billion, down from the $1.1 billion to $1.2 billion previously forecast.

Analysts polled by FactSet Research had forecast earnings of $5.27 per share on sales of $1.13 billion.

“Our second-quarter sales performance was below expectations as COVID-related lockdowns, restrictions and other disruptions continued in mainland China and other markets,” Usana chief executive and chairman Kevin Guest said in a statement. “These challenges were particularly disruptive to the regional sales program we offered in several key markets during the quarter, ultimately resulting in lower than expected program enrollment, sales results and active customer numbers.”

“Importantly, this program should be a catalyst for revenue and customer growth not only during the quarter but also in the second half,” added Guest. “As a result, and the ongoing uncertainty surrounding the future operating environment, we anticipate weaker revenue and subscriber numbers in the second half of the year.”

For the second quarter, Usana predicted a profit of $ 1.05 per share with sales of $ 265 million. Analysts had forecast $1.26 per share on sales of $274 million.

https://www.marketwatch.com/story/usana-stock-drops-10-after-chinas-covid-lockdowns-blamed-for-reduced-forecast-11657140031?rss=1&siteid=rss The Usana share falls by 10 %after China’s Covid Lockdowns have been held responsible for the reduced forecast

Brian Lowry

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@internetcloning.com. The content will be deleted within 24 hours.

Related Articles

Back to top button