Usana shares rise on 2Q outlook boost

NEW YORK (AP) _ Shares of Usana Health Sciences Inc., which manufactures Nutritional supplement and skin care products, ticked higher Thursday after the company raised its second-quarter outlook on better-than-expected results from promotional and incentive programs.

The stock — which has traded between $18.18 and $51.50 over the last year — surged $2.32, or 9 percent, to $28.31 in midday trading.

The company now projects earnings between 60 cents and 63 cents per share, up from a previous forecast of between 48 cents and 51 cents. Additionally, the company boosted its revenue outlook to between $107 million and $109 million, from its prior view of $103 million to $106 million.

Analysts surveyed by Thomson Financial expect a profit of 48 cents per share and revenue of $103.9 million.

The stock is now trading above the $26 per share tender offer commenced in May by a group, including the company's chief executive, to take Usana private. The offer is scheduled to close on June 27.

D.A. Davidson&Co. analyst Timothy S. Ramey said the jump in Usana's share price will likely mean the tender offer price will be raised. Ramey, who hold a "Buy" rating on the shares, upped his price target to $36 from $30, and lifted his second-quarter and full-year estimates.

Despite Usana's improved outlook, Jefferies&Co. analyst Douglas M. Lane maintained his "Hold" rating on shares as he does not expect a competing offer to emerge. He added there is little for investors to benefit fromThursday's development unless it pressures the take-private group to raise their offer.