MLM Company USANA Expects To Beat 2006 Sales Forecasts

MLM company USANA Health Sciences had positive news to report when it announced that sales were strong and it expects to beat previous forecasts for 2006...

Nutritional and skin care products maker USANA Health Sciences Inc. said Wednesday it expects to beat sales and profit forecasts because of demand for its science-based products.

USANA Health Sciences said it expects to report fourth-quarter profit of 58 cents to 60 cents per share, compared with previous guidance for earnings of 56 cents to 58 cents per share.

For 2006, USANA Health Sciences anticipates $2.18 to $2.20 per share in earnings, higher than previous guidance for earnings of $2.12 to $2.18.

The company expects $101 million in fourth-quarter revenue, versus guidance of $98 million to $100 million.

The company also reported an accounting change in the way sales are reported.

Further comment at StreetInsider.com here.

Shares In MLM Company Herbalife Plunge 24% On Mexico Problems

A 24% plunge in MLM company Herbalife Ltd.'s stock Friday, after the supplement maker's announcement that it expected slower sales growth in Mexico, illustrates the rising importance of foreign markets to the bottom line of U.S. direct-sales companies.

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The company said several Mexican distributors were breaking its rules by selling products in smaller-than-authorized quantities or advertising themselves as retailers. The supplements can be sold only in arranged group settings or by referral. Herbalife blamed rushed training for the problems.

The troubles in Mexico, which also included counterfeit products and unregistered sellers, caused Herbalife to downgrade its 2007 growth forecast to 6% to 10% from a previous forecast of 10% to 15%.