Results: Nature's Sunshine Products, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
Nature's Sunshine Products, Inc. NATR | 0.00 |
Nature's Sunshine Products, Inc. (NASDAQ:NATR) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to US$24.23 in the week after its latest quarterly results. It looks like a credible result overall - although revenues of US$123m were what the analysts expected, Nature's Sunshine Products surprised by delivering a (statutory) profit of US$0.29 per share, an impressive 41% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the dual analysts covering Nature's Sunshine Products are now predicting revenues of US$507.7m in 2026. If met, this would reflect a credible 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.5% to US$1.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$507.3m and earnings per share (EPS) of US$1.12 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.1% to US$35.00.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Nature's Sunshine Products' rate of growth is expected to accelerate meaningfully, with the forecast 4.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nature's Sunshine Products is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nature's Sunshine Products following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Nature's Sunshine Products. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Nature's Sunshine Products going out as far as 2027, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Nature's Sunshine Products .
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
