Herbalife Earnings Preview: Can This Streak Continue?

Herbalife (NYSE:HLF) will report earnings after markets close on Monday, April 29th. Herbalife Ltd. is a network marketing company that sells weight management, nutritional supplement and personal care products. The Company sells its products globally through a network of independent distributors. Herbalife also sells literature and promotional materials.

Here is your Cheat Sheet to Herbalife Earnings:

Earnings Expectations: Analysts expect earnings of $1.07 per share on revenues of $1.12 billion. Currently, the company’s P/E ratio stands at 8.90.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.25 to a profit $1.26. For the current year, the average estimate is a profit of $4.66, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Herbalife has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,359 2,325 2,734 3,455 4,072
Diluted EPS ($) 1.68 1.61 2.37 3.30 4.05

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 884.57 964.18 1,032 1,017 1,059
Diluted EPS ($) 0.85 0.88 1.10 1.04 1.03

Past Performance:
Herbalife has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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