LifeVantage (LFVN) Stock: Why The Price Substantially Fell Today

By Amit Chowdhry ● Feb 2, 2022
  • The stock price of LifeVantage Corp (NASDAQ: LFVN) fell by over 15% during intraday trading today. This is why it happened.

The stock price of LifeVantage Corp (NASDAQ: LFVN) fell by over 15% during intraday trading today. Investors are responding negatively to the company’s second-quarter results.

These are the highlights:

— Revenue of $52.2 million, a decrease of 11.6% from the prior-year period and down 1.9% sequentially;

— Total active accounts declined 6.3% to 163,000 as the growth of 6.4% in Asia/Pacific & Europe was more than offset by declines of 11.0% in the Americas. On a sequential basis, total active accounts were fractionally lower;

— Earnings per diluted share were $0.01, versus $0.26 a year ago;

— Adjusted earnings per diluted share were $0.05, versus $0.25 a year ago;

— Adjusted EBITDA of $1.9 million, a decrease of 71.6%;

— Repurchased approximately 0.5 million shares; and

— Balance sheet with $20.2 million of cash and no debt.

KEY QUOTE:

“The second quarter proved to be more challenging than we anticipated as COVID factors caused our early momentum to stall by limiting in-person activity. We also encountered unexpected, but related, delays with our recent Philippines launch that pushed the initial revenue ramp into January. While we are disappointed that revenue and earnings results did not meet our expectations, we still made meaningful progress on several initiatives to position the Company for its next stage of growth. Most notable was the recent appointment of two new executives, a Chief Marketing Officer and a Chief Digital Officer, effectively completing our senior leadership team and providing LifeVantage with additional depth in the key areas necessary to transform our business and accelerate growth. Despite tempering our fiscal 2022 outlook to reflect recent results, the Company’s financial position remains strong and I’m confident in our ability to drive long-term value for all stakeholders.”

— Steve Fife, Chief Executive Officer of LifeVantage

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.