Herbalife (NYSE:HLF) Announces Earnings Results, Beats Estimates By $0.09 EPS

Herbalife (NYSE:HLF) announced its quarterly earnings data on Wednesday. The company reported $0.64 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.09, FiscalAI reports. Herbalife had a negative return on equity of 35.02% and a net margin of 4.53%.The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.30 billion.

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

• Herbalife reported a strong Q1 with net sales of $1.3 billion (up 7.8% YoY), adjusted EBITDA of $176 million above guidance, and $114 million of operating cash flow.
• In April the company completed a $1.45 billion senior secured refinancing that cuts borrowing costs, extends maturities and is expected to deliver roughly $45 million of annual cash interest savings; net leverage was 2.1x with a target to get below 2.0x by year-end.
• Herbalife is pushing a personalization strategy through acquisitions and tech (notably Bioniq, Link BioSciences, Pro2col and Prüvit), with Bioniq rolling out in 11 EMEA markets in June and the U.S. in July and subscription opportunities planned, although management has not yet baked incremental revenue from these initiatives into guidance.
• Regional results were mixed: India hit a record $275 million (≈+32% YoY) supported by a GST cut, Latin America showed strong growth, while China (down ~12–16% local currency) and EMEA/NA faced softness (NA impacted by weather and shipment timing).
• Outlook includes risks: Q2 net sales guided to +1.5%–5.5% (reported) and Q2 EBITDA $150–$170M, full-year adjusted EBITDA $675–$705M, but management now expects an India GST-related $20–25 million headwind to FY EBITDA and notes FX and higher oil costs as additional pressures (the company is absorbing fuel costs for now).

Herbalife Stock Up 1.3%

Shares of HLF traded up $0.21 during trading hours on Wednesday, reaching $16.47. 1,206,532 shares of the company traded hands, compared to its average volume of 1,494,710. The stock has a market capitalization of $1.70 billion, a PE ratio of 7.49, a price-to-earnings-growth ratio of 0.94 and a beta of 0.98. Herbalife has a fifty-two week low of $6.59 and a fifty-two week high of $20.40. The stock has a fifty day simple moving average of $16.02 and a 200 day simple moving average of $14.23.

Wall Street Analysts Forecast Growth

HLF has been the subject of a number of research analyst reports. Wall Street Zen upgraded Herbalife from a “buy” rating to a “strong-buy” rating in a research report on Saturday, April 18th. Weiss Ratings restated a “hold (c)” rating on shares of Herbalife in a research report on Thursday, January 22nd. Maxim Group initiated coverage on Herbalife in a research report on Tuesday, January 6th. They issued a “buy” rating and a $20.00 price target for the company. Royal Bank Of Canada dropped their price target on Herbalife from $17.00 to $16.00 and set a “sector perform” rating for the company in a research report on Tuesday, April 28th. Finally, Zacks Research cut Herbalife from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 20th. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $17.80.

Institutional Trading of Herbalife

A number of large investors have recently made changes to their positions in the stock. Geode Capital Management LLC boosted its stake in shares of Herbalife by 1.0% during the fourth quarter. Geode Capital Management LLC now owns 2,577,634 shares of the company’s stock valued at $33,231,000 after acquiring an additional 25,783 shares during the last quarter. Quantedge Capital Pte Ltd boosted its stake in shares of Herbalife by 5.2% during 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 during the last quarter. Solel Partners LP boosted 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 acquiring an additional 262,614 shares during the last quarter. Dimensional Fund Advisors LP boosted 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 acquiring an additional 52,642 shares during the last quarter. Finally, Manatuck Hill Partners LLC lifted its position in Herbalife by 122.2% during the third quarter. Manatuck Hill Partners LLC now owns 1,000,000 shares of the company’s stock worth $8,440,000 after buying an additional 550,000 shares during the period.

About Herbalife

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.