USNA - USANA Health stock falls postmarket on weak prelim Q2 results 2022 guidance cut

USANA Health Sciences ( NYSE: USNA ) stock fell 9.8% postmarket on Wednesday after the firm posted prelim. Q2 results below Street estimates, hurt by COVID-19 restrictions and inflation, and lowered its 2022 guidance.

USNA expects Q2 EPS of ~$1.05 vs. $1.87 in Q2 2021, below consensus estimate of $1.26.

Q2 net sales are projected to be ~$265M vs. $337M in Q2 2021, lower than consensus estimate of $272.77M.

"Sales performance during Q2 was below expectations as COVID-related lockdowns, restrictions, and other disruptions continued in mainland China and other markets," said USNA CEO Kevin Guest.

"These challenges were disruptive to the regional sales program in key markets, and ultimately caused participation in the program, sales and active customer counts to come in lower than anticipated. As a result of this and continued uncertainty, we anticipate softer sales and customer counts in H2," Guest added.

USNA now expects 2022 EPS of $3.85-$4.45 vs. consensus estimate of $5.27. Its prior guidance was $5-$5.70.

2022 net sales are estimated to be $1.015B-$1.065B vs. consensus estimate of $1.13B. Its earlier outlook was $1.1B-$1.2B.

"... inflationary pressures persisted across several areas of business. Despite current challenges, USNA expects to generate strong cash flow in 2022," said CFO Doug Hekking.

Q2 results will be released after market close on Jul. 26.

USNA stock declined ~26% YTD.

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