USANA Health Sciences Revises Outlook; Board Approves Two-for-one Stock Split

(RTTNews) - USANA Health Sciences, Inc. (USNA) revised its consolidated net sales outlook and earnings per share outlook for 2016. The company now expects: consolidated net sales between $1.0 billion and $1.01 billion, which is between 9% and 10% growth; and earnings per share between $7.90 and $8.10 compared to prior guidance of $7.90 to $8.20.

The Board of USANA has approved a two-for-one stock split of common shares to illustrate confidence in the long term growth potential of USANA and the strategy being executed by management. The split is also intended to make the stock more accessible to retail investors. Shareholders will receive one additional common share USNA for each common share held by way of a stock dividend which will be distributed to the shareholders of record as of the close of business on November 14, 2016, with a payment date of November 22, 2016.

Net earnings for the third quarter of 2016 increased to $30.1 million, an increase of 17.5% compared to $25.6 million in the prior-year period. The company said the increase in net earnings was due primarily to a meaningfully lower effective tax rate, as well as higher net sales, which were partially offset by higher operating expenses during the quarter. Earnings per share for the third quarter increased by 25.0% to $2.40, compared with $1.92 in the prior year period.

Net sales for the third quarter of 2016 increased by 9.0% to $254.2 million, compared with $233.3 million in the prior-year period, but came in below the company's expectations due to softer-than-anticipated sales in the Greater China region.