NBTY Inc. (NTY) just posted record results for the fiscal fourth quarter as sales jumped 12%. The company is not only a value stock but analysts expect earnings to grow at 13.75% over the next 5 years. NBTY has a PEG ratio of just 0.90.

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 Reports Record Fourth Quarter Results

On Nov 9, NBTY reported fiscal fourth quarter results which easily beat on the Zacks Consensus Estimate by 12.05%. Earnings per share were 93 cents compared to the Zacks Consensus of 83 cents. EPS was 28 cents in the year ago period.

Sales soared by 12% to a record $674 million from $602 million. Sales for the Wholesale/US Nutrition division rose 13% to $404 million. It markets brands such as Nature’s Bounty, Rexall and Sundown.

For the quarter, the division outperformed the industry, which saw industry-wide sales of vitamins and other supplements rise by 11% while the company’s wholesale brands segment climbed 13.6%.

On the retail side, the company’s Vitamin World Stores in the U.S. and LeNaturiste stores in Canada saw net sales up 2% in the quarter but comparable store sales were flat.

Zacks Consensus Estimates Rise

Analysts like what they’ve heard in the fourth quarter results. The fiscal 2010 first quarter and full year Zacks Consensus Estimates are both moving higher.

The first quarter Zacks Consensus Estimates rose 6 cents to 84 cents in the last 7 days, as 3 out of 6 covering analysts raised in that time.

For fiscal 2010, half of the 8 covering analysts raised in the last week to $3.33 from $3.17 per share. Analysts expect 2010 earnings per share growth of 33.89%.

Value Fundamentals

NBTY is a Zacks #1 Rank (strong buy) stock. It is trading with a forward P/E of 12.32 and a price-to-book of 2.31. The company has a strong 5-year average return on equity (ROE) of 15.67%.

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