Herbalife Earnings: Profits CLIMB By Double Figures AGAIN

Herbalife Ltd. (NYSE:HLF) reported net income above Wall Street’s expectations for the second quarter. Herbalife is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products.

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Herbalife Ltd. Earnings Cheat Sheet

Results: Net income for Herbalife Ltd. rose to $133.4 million ($1.10 per share) vs. $111.2 million (88 cents per share) in the same quarter a year earlier. This marks a rise of 20% from the year-earlier quarter.

Revenue: Rose 17.3% to $1.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Herbalife Ltd. beat the mean analyst estimate of 96 cents per share. It beat the average revenue estimate of $892.9 million.

Quoting Management: “The broad strength of our business success continued throughout the second quarter with strong sales performance from each of our six regions, along with record earnings and strong cash flow,” said Michael O. Johnson, the company’s chairman and CEO. “We believe the underlying drivers of our current business success, engaged distributors focused on globalizing daily consumption sales methods and products which are relevant for today’s global macro trends of obesity and an aging population, will continue to provide the catalyst for future growth.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 23.2%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 30% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 23.5% and in the fourth quarter of the last fiscal year, the figure rose 30.1%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the first quarter, by 13 cents in the fourth quarter of the last fiscal year, and by 11 cents in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 96 cents a share to 99 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $3.64 per to share to $3.80.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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