Network Marketing company, USANA posted record growth for the 1st quarter of 2007, but scaled back it's 2nd quarter projections as growth seems to be slowing due to recent negative press.
Salt Lake Tribune:
Usana Health Sciences, which reported record sales and earnings for the first quarter of 2007, dialed back growth projections for the second quarter and for the year, blaming negative publicity about the company and its sales model.
As a result, shares of the West Valley City-based supplements maker slid 5.2 percent over two consecutive days, from $42.82 to $40.59.
Still, analysts generally remained neutral to positive on the stock, with limited concerns about its prospects.
D.A. Davidson analyst Timothy Ramey maintained a "buy" rating, noting the positive direction of the first-quarter profit, which rose 22 percent, and sales, which rose 16 percent.
Wedbush Morgan analyst Rommel Dionisio maintained a "hold" rating, citing first-quarter results that were relatively in line with expectations, despite Usana lowering its outlook.
In December, the company predicted earnings-per-share increases of 17 percent to 20 percent. On Monday, the company dropped those projections by 2 percent.
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