Blyth swings to Q2 loss, but ups 2012 guidance, shares jump
Home decor and health and wellness products designer Blyth (NYSE:BTH) said Tuesday it swung to a loss in the second quarter, but raised its earnings guidance for the full-year 2012, citing strong sales and profit growth at its ViSalus Sciences business.
As at 1.15pm EDT, shares were up 26% at $69.89.
Net losses for the three months ending July 31 were due to increased losses from discontinued operations, and a charge related to the ViSalus equity incentive plan. Earlier this year, Blyth acquired an additional stake in nutritional supplement company ViSalus and now holds 57.5% of the company.
Greenwich, Connecticut-based Blyth posted a net loss of $3.07 million, or $0.37 per share, for the second quarter, compared to net earnings of $0.74 million, or $0.09 per share, in the prior-year period.
The company incurred a $6.0 million charge for the ViSalus equity incentive plan. During the quarter, the company's net loss from discontinued operations also widened to $0.18 per share, from $0.05 per share in the preceding year.
However, net sales for the three month period increased 17% to $185.53 million, due to significant year-over-year growth at ViSalus Sciences.
Blyth's chairman and CEO Robert Goergen said: "We are very pleased with the performance of ViSalus, which accelerated during the second quarter."
As a result, Blyth said earnings for fiscal 2012 are now expected in a range of $2.23 to $2.43 per share, up from its prior guidance of between $2.10 to $2.30 per share.
Earnings per share from continuing operations are now anticipated in the range of $3.30 to $3.50 per share, compared to its earlier forecast of $2.80 to $3.00 per share.
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