Herbalife (NYSE:HLF) Releases Earnings Results, Misses Estimates By $0.03 EPS

by · The Markets Daily

Herbalife (NYSE:HLF – Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.51 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.03), FiscalAI reports. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%.The company had revenue of $1.33 billion for the quarter, compared to analysts’ expectations of $1.31 billion. During the same quarter in the previous year, the company earned $0.59 earnings per share. The company’s revenue was up 5.4% on a year-over-year basis.

Here are the key takeaways from Herbalife’s conference call:

  • Second-quarter net sales rose 5.4% year over year to $1.3 billion, at the high end of guidance, while adjusted EBITDA reached $167 million. Volume increased 5.8%, marking the fourth consecutive quarter of year-over-year growth.
  • Management raised the midpoint of its full-year constant-currency net sales and adjusted EBITDA outlook, now expecting sales growth of 2.5%-5.5% and constant-currency adjusted EBITDA of $690 million-$710 million.
  • Regional performance remained uneven: India led growth with a 47% constant-currency sales increase and North America returned to slight growth, while EMEA declined 5.6% and China fell 29% on a constant-currency basis.
  • Herbalife launched personalized nutrition offerings including Bioniq GO, expanded its Pro2col digital health platform and began beta testing at-home blood biomarker integration. Management views these initiatives, along with Life I/O products, as avenues to broaden its customer base and participate in the growing personalized nutrition market.
  • First-half operating cash flow increased 52% to $147 million, and refinancing reduced quarterly net interest expense to $37 million from $54 million a year earlier. The company remains focused on reducing net leverage below two times by year-end and repaying more than $600 million of debt by the end of 2028.

Herbalife Stock Up 7.2%

Shares of HLF stock traded up $0.82 during mid-day trading on Friday, reaching $12.33. The company’s stock had a trading volume of 2,320,957 shares, compared to its average volume of 1,501,364. The firm has a market capitalization of $1.28 billion, a PE ratio of 7.96, a price-to-earnings-growth ratio of 0.63 and a beta of 0.87. The company’s 50 day simple moving average is $12.26 and its 200-day simple moving average is $14.52. Herbalife has a 12-month low of $7.56 and a 12-month high of $20.40.

Insiders Place Their Bets

In related news, insider Frank Lamberti sold 134,982 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $13.50, for a total transaction of $1,822,257.00. Following the completion of the sale, the insider directly owned 36,624 shares of the company’s stock, valued at approximately $494,424. This represents a 78.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Troy Hicks sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $12.32, for a total value of $123,200.00. Following the completion of the transaction, the chief operating officer directly owned 9,706 shares in the company, valued at $119,577.92. This trade represents a 50.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 191,296 shares of company stock valued at $2,551,678. 5.13% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Herbalife

Several hedge funds have recently modified their holdings of HLF. Geode Capital Management LLC boosted its holdings in Herbalife by 1.0% in the 4th quarter. Geode Capital Management LLC now owns 2,577,634 shares of the company’s stock worth $33,231,000 after acquiring an additional 25,783 shares during the period. Quantedge Capital Pte Ltd grew its position in Herbalife by 5.2% in the fourth quarter. Quantedge Capital Pte Ltd now owns 2,249,683 shares of the company’s stock valued at $28,998,000 after acquiring an additional 111,700 shares in the last quarter. Solel Partners LP raised its stake in shares of Herbalife by 18.7% during the second quarter. Solel Partners LP now owns 1,669,405 shares of the company’s stock valued at $14,390,000 after purchasing an additional 262,614 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Herbalife by 3.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,451,749 shares of the company’s stock valued at $18,713,000 after purchasing an additional 52,642 shares during the period. Finally, Manatuck Hill Partners LLC raised its stake in shares of Herbalife by 122.2% during the third quarter. Manatuck Hill Partners LLC now owns 1,000,000 shares of the company’s stock valued at $8,440,000 after purchasing an additional 550,000 shares during the period.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Mizuho set a $17.00 price target on shares of Herbalife in a research report on Monday, May 4th. Weiss Ratings lowered shares of Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, July 24th. Wall Street Zen cut shares of Herbalife from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Royal Bank Of Canada dropped their price objective on Herbalife from $17.00 to $16.00 and set a “sector perform” rating for the company in a report on Tuesday, April 28th. Finally, Citigroup restated a “buy” rating and set a $17.00 price objective (down from $21.00) on shares of Herbalife in a report on Friday. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $17.00.

Check Out Our Latest Stock Analysis on HLF

About Herbalife

(Get Free Report)

Herbalife Nutrition Ltd. (NYSE: HLF) operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards.

Founded in 1980 by Mark R.

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