USANA Health Sciences, Inc. | $USNA Stock | Shares Stumble On Lower Than Expected Earnings Numbers

USANA Health Sciences

USANA Health Sciences, Inc. (NASDAQ: USNA)



USANA Health Sciences, Inc. (USNA), a science-based nutritional and personal care products company yesterday reported their fourth quarter 2016 financial results. The company reported fourth quarter earnings of $21.9 million. USANA reported fourth quarter earnings of $0.87 per share which fell short of analyst expectations of $0.94 per share. USANA reported fourth quarter revenues of $252.9 million.


USANA Health Sciences, Inc. CEO’s Comments

“While USANA finished the year with another quarter of solid top line and Associate growth, several initiatives we implemented during the fourth quarter resulted in net earnings at the lower end of our guidance,” said Kevin Guest, Chief Executive Officer. “The first of these initiatives was the successful transition of our China manufacturing operations to our new production facility, which is now fully operational. With this facility in place, we now have the production capacity that we need in China. A second initiative entailed us offering a growth incentive to our Associates around the world that positively contributed to our performance during the quarter. These initiatives are important to our business and have also helped us get off to a good start in 2017.”  Business Wire


USNA Technical Analysis

USANA Health Sciences

USNA opened trading yesterday at $62.80 which was up from the previous day’s trading close of $62.70. Shares closed trading yesterday at $62.65 and spiked down after market to $49.70, equivalent to a 21% decrease from the closing price. Taking a look at the daily chart we can see that the last time USNA traded below these levels we have to go back to the week of April 14th, 2013 when it traded at $48.62 .

Taking a closer look at the daily chart we can see that before the spike down USNA had been a trading range in between $59.50 and $64.50 ever since the stock split on November 23rd, 2015. USNA has a float of 9.41 million shares and traded below the normal daily trading volume on Tuesday. For trading purposes, I would like to see USNA open trading on Wednesday below $54.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

USANA Health Sciences, Inc. develops, manufactures, and sells science-based nutritional and personal care products primarily to reduce the risk of chronic degenerative disease. The company offers USANA Nutritionals Essentials product line, which includes vitamin and mineral supplements that provide a foundation of total body nutrition for various age groups; optimizers comprising targeted supplements that are designed to meet cardiovascular, skeletal/structural, and digestive health needs; and foods that include low-glycemic meal replacement shakes, snack bars, and other related products, which provide macro-nutrition.

It also provides Sensé—beautiful science products, such as personal care products that support healthy skin and hair through topical nourishment, moisturization, and protection; and other products for prenatal, infant, and young child age groups.

In addition, the company offers materials and online tools, such as associate starter kit and product brochures to assist associates in building their businesses, as well as in marketing products. It offers its products directly in the Asia Pacific, the Americas, and Europe. USANA Health Sciences, Inc. was founded in 1992 and is headquartered in Salt Lake City, Utah.  Yahoo Finance