Billionaires Love Nu Skin

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Mar 25, 2013
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Any research that mentions our “Youth Gene Clusters” sounds very promising, especially if we believe we can stimulate our youth genes to turn back the hands of time and live longer, better and more beautifully. Research from Nu Skin Enterprises Inc, (NUS, Financial), the global anti-aging products company, is about resetting the youth gene.

With last year’s revenue of $2.17 billion, up 24%, and new product releases on the horizon, Nu Skin Enterprises Inc. (NUS) was top in the consumer goods sector last week. The company's earnings per share have risen from $1.49 per share in 1998, to current forecast earnings per share of approximately $3.77 to $3.92 for fiscal 2013. A dividend contender, the company started paying a dividend about 12 years ago and has paid a dividend every year. Most recently, Nu Skin Enterprises Inc. paid a quarterly dividend of $0.30 per share on March 13, 2013.

It’s no wonder the anti-aging personal care products giant NUS is on the keeps-buying list of a number of billionaire investor Gurus. As of the quarter ending Dec. 31, 2012, Guru Chuck Royce, president and co-chief investment officer of Royce & Associates, owns 7,414,768 shares of NUS, valued as $275 million. This accounts for 0.89% of his equity portfolio. Chuck Royce added his NUS positions in the Sept. 30, 2012 quarter by 0.01%, again in the Dec. 31, 2012 quarter by 8.07%.

Chuck Royce holding history:



Propelled by genetic and anti-aging research, Nu Skin Enterprises Inc. is a global direct-selling company with operations in 52 markets worldwide. The company develops and distributes anti-aging personal care products and nutritional supplements sold under the Nu Skin and Pharmanex brands. Its new weight management system will be released in the latter half of 2013.

In February the company announced record results with revenue of $588.2 million in fourth quarter 2012, up 19% over the prior-year period. Earnings per share for the quarter were $0.97, a 27% year-over-year improvement.

The company also reported 2012 revenue of $2.17 billion, up 24% year over year. Annual revenue was negatively impacted 1 percent by foreign currency fluctuations. Earnings per share for the year were $3.52, a 48% increase over 2011 (or 31% when excluding charges related to a Japan customs case in the prior year).

Nu Skin Enterprises’ Joseph Chang, Ph.D., the company’s chief scientific officer and executive vice president of product development, explains the company approach: “Nu Skin’s scientific approach to anti-aging looks at the level of genetic expression of aging and is supported by our partnerships with some of the best minds in anti-aging science, such as our colleagues at LifeGen Technologies. Identifying functional Youth Gene Clusters and understanding how ingredients can target and reset those genes to a more youthful profile helps us develop next-generation skin care and nutritional products.”

Nu Skin President and CEO Truman Hunt said, "We are pleased with our solid fourth quarter results and believe 2013 will be another record year as we launch a new wave of compelling anti-aging products and project strong performances around the world."

The company reports its fourth quarter revenue by region as follows:

“North Asia. Fourth-quarter revenue in North Asia was $250.2 million, compared to $204.3 million for the same period in 2011. The region's results were negatively impacted approximately 1% by foreign currency fluctuations. Japan local-currency revenue improved 26% while South Korea experienced local-currency revenue growth of 19%.

Greater China. In Greater China, fourth-quarter revenue increased 28% to $141.7 million, compared to $110.6 million in the prior-year period. Foreign currency fluctuations had a positive impact of 3% in the region.

South Asia/Pacific. Revenue in South Asia/Pacific was $63.5 million, a 3%t decline compared to the prior year. Sales in the quarter were positively impacted 4% by foreign currency fluctuations.

Americas. Revenue in the Americas improved 4% to $80.1 million, compared to $76.9 million in the prior-year period. Sales in the U.S. increased 18% when excluding $12.5 million of convention sales to non-U.S. distributors in the fourth quarter of 2011.

Europe. Revenue in Europe was $52.8 million, a 38% improvement over the prior-year period. Results in the region were negatively impacted 6% by foreign currency fluctuations.”

Nu Skin Enterprises Inc. has a market cap of $2.46 billion; its shares were traded at around $42.81 with a P/E ratio of 11.73 and P/S ratio of 1.2. For a 12-month growth rate, Nu Skin Enterprises shows revenue growth of 27.7% annual rate per share.

NUS revenue per share annual growth:

1364240257369.pngNUS data by GuruFocus.com