Herbalife Earnings: Here’s Why Investors are Happy Now

Herbalife Ltd. (NYSE:HLF) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.50%.

Herbalife Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 28.18% to $1.41 in the quarter versus EPS of $1.10 in the year-earlier quarter.

Revenue: Rose 18.13% to $1.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Herbalife Ltd. reported adjusted EPS income of $1.41 per share. By that measure, the company beat the mean analyst estimate of $1.18. It beat the average revenue estimate of $1.16 billion.

Quoting Management: “We reported our fifteenth quarter in a row of double digit top-line growth, reflecting the success that our products and distribution model are having in markets around the world helping to mitigate the adverse effects of the obesity epidemic. The second quarter record results for volume point and net sales were driven by the ongoing engagement of our distributors and consumer demand for our weight loss and nutrition products worldwide,” said Michael O. Johnson, Herbalife’s chairman and CEO.

Key Stats (on next page)…

Revenue increased 8.49% from $1.12 billion in the previous quarter. EPS increased 11.02% from $1.27 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.16 and has not changed. For the current year, the average estimate has moved up from a profit of $4.66 to a profit of $4.8 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)