Nu Skin Enterprises – Growth And Income – Zacks Rank Buy

Nu Skin Enterprises (NUS) recently posted record results for the third quarter. Earnings per share of 41 cents topped the previous year's 26 cents and matched the Zacks Consensus Estimate. Revenue was a record $334.2 million, an increase of 8% year-over-year.

Company Description

Nu Skin Enterprises is a $1 billion direct selling company that markets and distributes premium quality personal care, nutrition and technology products through a global network of more than 750,000 active independent distributors and preferred customers. The company operates three core brands, Nu Skin, Pharmanex, and Big Planet.

The Nu Skin brand has a line of more than 100 premium skin treatment and other personal care products. With a team of more than 100 in-house scientists, Pharmanex uses a pharmaceutical approach that is setting the standard for the dietary supplement industry. Big Planet brings the benefits of technology to everyone with innovative products like Maxvault, a line of products that provide the easiest way to preserve, organize, share, and enjoy your photos and home movies.

Nu Skin Enterprises operates in 48 international markets across the Americas, the Asia Pacific region and Europe, with more than 75 percent of revenue coming from Asia.

A Record Quarter and Bullish Forecasts

The company recently posted record results for the third quarter. Earnings per share of 41 cents topped the previous year's 26 cents and matched the Zacks Consensus Estimate. Revenue was a record $334.2 million, an increase of 8% year-over-year.

Nu Skin boosted its annual earnings guidance to $1.38 to $1.40 per share. The company sees fourth-quarter earnings coming in 32 to 34 cents per share.

Analysts polled by Zacks are calling for 2009 earnings of $1.41 per share, a penny higher than last week and above last month's $1.28.

For the fourth quarter, the Zacks Consensus Estimate of 36 cents per share is up a penny from last week and 5 cents above last month's projection.

Outstanding Fundamentals

Nu Skin's return on equity (ROE) of 25% dwarfs the industry average of 6%. The company's net profit margin of 6% tops the industry average of 3%. Nu Skin pays an industry -leading dividend yield of 2%.

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