The chart below shows how NATR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NATR sees a +3.91% change in stock price 10 days leading up to the earnings, and a -0.10% change 10 days following the report. On the earnings day itself, the stock moves by -0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales Volume Increase: 1. Record Sales Volume: Nature's Sunshine achieved $114.6 million in sales for Q3 2024, marking a 4% increase compared to the previous year on a local currency basis, driven by strong consumer response to growth strategies.
Digital Sales Increase: 2. Digital Sales Growth: The company's digital sales in North America grew by 17% in Q3 2024, reflecting improved site performance and customer engagement following the upgrade of their digital platform.
Asia Pacific Sales Surge: 3. Strong Performance in Asia Pacific: Sales in the Asia Pacific region increased by 9% year-over-year in local currency, with Taiwan and Japan experiencing remarkable growth rates of 20% and 34%, respectively.
Adjusted EBITDA Increase: 4. Increased Adjusted EBITDA: Adjusted EBITDA for Q3 2024 rose to $10.7 million, a 5% increase from the prior year, indicating improved profitability amid strategic cost-saving initiatives.
Strong Cash Reserves: 5. Healthy Cash Position: Nature's Sunshine reported cash and cash equivalents of $78.7 million with zero debt, positioning the company well for future investments and growth initiatives.
Negative
North American Sales Decline: 1. Decline in North American Sales: North America sales decreased by 3% in Q3, indicating ongoing challenges in the core business despite a 17% growth in digital sales.
China Sales Decline: 2. Significant Drop in China Sales: Sales in China fell by 23% in Q3 compared to the prior year, reflecting a sharp downturn in the macroeconomic environment affecting consumer spending.
Gross Margin Decline: 3. Decreased Gross Margin: Gross margin decreased by 172 basis points to 71.3% from 73.1% a year ago, primarily due to higher inflation and unfavorable foreign currency exchange rates.
Decline in Operating Income: 4. Lower Operating Income: Operating income decreased to $5.3 million, or 4.6% of net sales, down from $5.8 million, or 5.2% of net sales, in the year-ago quarter.
Operating Cash Flow Decline: 5. Decline in Operating Cash Flow: Net cash provided by operating activities dropped to $13.1 million from $31.6 million in the prior year period, driven by the timing of payments for accrued liabilities and receivables.
Nature's Sunshine Products, Inc. (NATR) Q3 2024 Earnings Call Transcript
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