Herbalife Ltd. Fourth Quarter Earnings Sneak Peek

Herbalife Ltd. (NYSE:HLF) will unveil its latest earnings on Tuesday, February 21, 2012. Herbalife is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products.

Herbalife Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 73 cents per share, a rise of 12.3% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $3.18 per share, a rise of 33.6% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 11 cents, coming in at profit of 87 cents a share versus the estimate of net income of 76 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $856.6 million in revenue this quarter, a rise of 16% from the year-ago quarter. Analysts are forecasting total revenue of $3.43 billion for the year, a rise of 25.6% from last year’s revenue of $2.73 billion.

Analyst Ratings: Analysts are high on the stock, with 10 analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

A Look Back: In the third quarter, profit rose 42.6% to $108 million (87 cents a share) from $75.7 million (61 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 30% to $895.2 million from $688.4 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 25.8%, with the biggest boost coming in the most recent quarter when revenue rose 30% from the year earlier quarter.

The company has seen net income rise in three consecutive quarters. Net income rose 35.7% in the second quarter and 68.8% in the first quarter.

Stock Price Performance: Between December 16, 2011 and February 15, 2012, the stock price had risen $7.92 (15.3%), from $51.66 to $59.58. The stock price saw one of its best stretches over the last year between April 4, 2011 and April 13, 2011, when shares rose for eight straight days, increasing 5.3% (+$2.13) over that span. It saw one of its worst periods between November 3, 2011 and November 10, 2011 when shares fell for six straight days, dropping 7.3% (-$4.42) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com