Natural Health Trends (NASDAQ:NHTC) Issues Earnings Results

Natural Health Trends (NASDAQ:NHTC) issued its earnings results on Wednesday. The company reported ($0.03) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $7.56 million for the quarter. Natural Health Trends had a negative return on equity of 7.76% and a negative net margin of 4.18%.

Here are the key takeaways from Natural Health Trends’ conference call:

• Third-quarter revenue fell 20% year over year to $7.6 million, reflecting consumer pessimism in China, regulatory uncertainty, and lingering effects from member misconduct. Revenue was flat sequentially after the company introduced lower-priced packages and additional incentives.
• Restructuring efforts continued to improve profitability, with operating expenses down nearly $500,000 during the quarter and year-to-date savings reaching $1.1 million. The operating loss narrowed to $277,000 from $643,000 sequentially, while the net loss improved to $232,000, or $0.03 per diluted share.
• The company is investing in future engagement and growth through an AI-powered marketing and communication app for Chinese members, the upcoming Move Prime joint-health supplement, and a traditional Chinese medicine product planned for China. Management said half of its markets outside Hong Kong and China increased sales during the quarter.
• Cash, cash equivalents, and marketable securities declined to $17.6 million at September 30 from $28.9 million at year-end, driven largely by share repurchases, dividends, and operating cash use. The company used $3.3 million in operating cash during the first nine months, although the board authorized further repurchases with $15.8 million remaining under the program.

Natural Health Trends Stock Performance

NASDAQ:NHTC traded up $0.00 during mid-day trading on Friday, reaching $0.78. 9,117 shares of the company’s stock were exchanged, compared to its average volume of 42,767. The business’s fifty day simple moving average is $1.23 and its two-hundred day simple moving average is $2.33. Natural Health Trends has a one year low of $0.75 and a one year high of $4.44. The firm has a market capitalization of $6.67 million, a PE ratio of -5.18 and a beta of 1.03.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (d)” rating on shares of Natural Health Trends in a report on Monday, September 14th. One analyst has rated the stock with a Sell rating. According to data from MarketBeat, the company has a consensus rating of “Sell”.

Institutional Investors Weigh In On Natural Health Trends

A hedge fund recently bought a new stake in Natural Health Trends stock. BlackRock Inc. acquired a new stake in Natural Health Trends Corp. (NASDAQ:NHTC) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 95,588 shares of the company’s stock, valued at approximately $169,000. BlackRock Inc. owned approximately 1.11% of Natural Health Trends at the end of the most recent reporting period. 10.13% of the stock is currently owned by hedge funds and other institutional investors.

Natural Health Trends Company Profile

Natural Health Trends Corp. is a direct-selling company that develops and distributes health, wellness and beauty products under the NHT Global brand. Its product portfolio includes nutritional supplements, personal-care products, skin-care items and lifestyle goods.

The company markets its products through a network of independent distributors and customers rather than primarily through traditional retail channels. Its direct-selling model supports product distribution, customer enrollment and sales across several international markets.

Natural Health Trends has historically focused much of its business in Asia, including Hong Kong and mainland China, while also serving customers and distributors in other regions.