Overview

* USANA preliminary Q3 net sales of $214 mln missed analyst expectations

* Preliminary adjusted EPS for Q3 was negative, reflecting sales and productivity challenges

* Company faced high effective tax rate impacting Q3 profitability

Outlook

* USANA expects full-year sales at the lower end of previous guidance

* USANA anticipates future lower tax rate due to cost alignment efforts

Result Drivers

* COMPENSATION PLAN TRANSITION - Co attributes softer sales and productivity to the rollout of an enhanced Brand Partner compensation plan

* HIYA SALES - Hiya's lower than anticipated customer acquisition rates led to softer sales in a seasonally strong quarter

* HIGH TAX RATE - Co faced a significant increase in the effective income tax rate, impacting Q3 profitability

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Prelim Miss $214 mln $224.10

Q3 Sales mln (1

Analyst)

Prelim -$0.36

Q3 EPS

Analyst Coverage

* Wall Street's median 12-month price target for USANA Health Sciences Inc ( USNA ) is $61.00, about 56.5% above its October 8 closing price of $26.51

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)