Natural Alternatives International (NAII) Stock: Why It Fell Over 12% Today

By Amit Chowdhry ● Sep 22, 2022
  • The stock price of Natural Alternatives International (NAII) fell by over 12% intraday today. This is why.

The stock price of Natural Alternatives International (NAII) fell by over 12% intraday today. 

Why: Q4 and YTD results

Results: Natural Alternatives announced a net income of $3.1 million, or $0.52 per diluted share, on net sales of $52.5 million for the fourth quarter of the fiscal year 2022 compared to a net income of $3.0 million, or $0.47 per diluted share, in the fourth quarter of the prior fiscal year. 

KEY QUOTES:

“We are proud of finishing the fourth quarter of fiscal 2022 with a new record for quarterly sales and we are very grateful to the perseverance and dedication from our team to achieve this success, despite many on-going challenges.  We have made significant strides in resolving our staffing shortfall in our domestic manufacturing operations; however, we continue to face challenges with the cost of labor and other rising operational costs related to inflation. We are diligently working with our supply chain and customers to look for ways to minimize the impact of these rising costs, but these obstacles and circumstances are not isolated to our company or industry.” 

“While we anticipate sales growth during our next fiscal year, there are headwinds within our industry, like many others, indicating that consumer demand is slowing as a result of inflation.  These challenges are causing consumers to make difficult decisions each month regarding where to allocate their disposable income.”

“Construction on our new manufacturing facility in Carlsbad, California is progressing, and we now anticipate this state-of-the art powder plant will be operational by the middle of our fiscal year 2023.”

“Finally, we are committed to delivering value for our shareholders as we repurchased 406,817 shares in fiscal 2022. We will continue to opportunistically buy back shares given our current valuation. While we see macro challenges across the economy ahead, our team is working hard across all departments to navigate these obstacles, deliver superior service for our customers and drive sales growth and profitability.”

— Mark A. Le Doux, Chairman and Chief Executive Officer of NAI