(NTY) NBTY Incorporated – Consensus Earnings Estimates Jump

January 15th, 2010

NBTY Inc. (NTY) recently announced preliminary fiscal first-quarter results which showed sales jumped 14%. The company has a PEG ratio of just 0.90 and is trading at 12.6x forward earnings.

Company Description

NBTY manufactures and distributes nutritional supplements in the United States and around the globe. The company offers 22,000 products under the name brands Vitamin World, Puritan’s Pride, Holland & Barrett, Rexall, Sundown, Worldwide Sport Nutrition and GNC (UK), among others.

NBTY operates retail stores, a web site and a wholesale business.

NBTY Saw First Quarter Sales Rise 14%

On Jan 12, NBTY announced preliminary net sales for both December and the fiscal first quarter.

For December, net sales climbed 12% to $269 million from $241 million in the year ago period. The largest segment, Wholesale/US Nutrition, saw the biggest gain, as sales rose 13%. But sales were also up across all 4 business segments.

For the fiscal first quarter, it was more of the same. Wholesale/US Nutrition saw sales jump 16% to $471 million from $407 million a year ago. European Retail grew 13%, E-Commerce gained 7% and North American Retail rose 6%.

There was no explanation of the increases in the company’s press release. NBTY is scheduled to report results on Jan 28 and presumably we’ll hear more then about what is driving these results. In its previous quarter, the wholesale segment also outperformed as vitamin and supplement sales surged.

Zacks Consensus Estimates Jump

Given the sales growth, analysts have scrambled to revise estimates higher. In the last week 4 estimates have moved higher for the fiscal first quarter as the Zacks Consensus rose 3 cents to 90 cents per share.

Similarly, for fiscal 2010, the Zacks Consensus has climbed 6 cents to $3.60 per share in the last 7 days.

Analysts are expecting fiscal 2010 earnings growth of 48.84%.

Value Fundamentals

NBTY is a Zacks #1 Rank (strong buy) stock. The company has a price-to-book ratio of 2.49. NBTY also has a strong 5-year average return on equity (ROE) of 15.49%.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

Zacks Investment Research

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Read more on NBTY at Wikinvest

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