Nu Skin Enterprises sold its Mavely affiliate marketing platform for $250 million, achieving a 5x ROI since 2021, and plans to use the cash for debt reduction and innovation. The new cash influx could accelerate both inorganic and organic growth, with potential acquisitions enhancing revenue and free cash flow growth. NUS could benefit from potential tax reductions under the new U.S. administration, which may increase net income and stock demand.
NUS' subsidiary has sold its Mavely affiliate marketing platform to Later for nearly $250 million, boosting innovation and resources.
After Nu Skin announced the sale of its marketing tech platform business, Mavely, to Summit Partners portfolio company Later, Jefferies noted that this transaction generated about a five-times return on company's investment in Mavely since the acquisition in 2021. Nu Skin's Q3 sales softness was offset by strength from the Rhyz business, with strength led by Mavely, noted the analyst, who also points out that the company will have a minority stake in the Later and Mavely combined businesses. Jefferies has a Hold rating and $7 price target on Nu Skin shares.
Nu Skin is struggling with a difficult macroeconomic landscape, volatile currency movements and pressures in the direct selling industry.
With such a great start to the holiday week, we could not help but gloat a little about the stocks I have mentioned related to the diet drugs, or what I call the “vanity” trade.
Nu Skin Enterprises, Inc. demonstrates a tested business model with long-term free cash flow generation, supported by acquisitions, new products, and digital transformation. Despite recent earnings disappointments, optimistic 2025-2026 EPS growth projections and multiple revenue catalysts suggest significant upside potential in the company's valuation. The company's global market expansion, cash acquisitions of LifeDNA and BeautyBio, and innovative product launches are key drivers for future net sales growth.
NUS' Q3 results show lower earnings and net sales amid macroeconomic pressures and challenges in the direct selling industry. Management lowers 2024 view.
Nu Skin Enterprises, Inc. (NYSE:NUS ) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Scott Pond - Vice President-Investor Relations Ryan Napierski - President and Chief Executive Officer James Thomas - Chief Financial Officer Conference Call Participants Chasen Bender - Citigroup Ashley Helgans - Jefferies Operator Thank you for standing by. My name is Prilla, and I will be your conference operator today.
Nu Skin Enterprises (NUS) came out with quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.56 per share a year ago.
NUS' Q3 results are likely to reflect the impacts of macroeconomic hurdles on consumer spending and customer acquisition.
Nu Skin Enterprises is at a potential inflection point with seemingly stabilized revenue. Management's restructuring and innovative product focus, particularly through the Rhyz business, show promise for a turnaround and long-term growth. A strong balance sheet and steady cash flow support the business, reducing bankruptcy risk and enabling strategic pivots and shareholder rewards.
NUS drives growth through strategic initiatives, innovative product launches like MYND360 and the expanding Rhyz business amid macroeconomic woes.