Herbalife Ltd. Third Quarter Earnings Sneak Peek

Herbalife Ltd. (NYSE:HLF) will unveil its latest earnings on Monday, October 31, 2011. 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 estimate of analysts is for profit of 76 cents per share, a rise of 31% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 70 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 76 cents during the last month. Analysts are projecting profit to rise by 29.4% versus last year to $3.08.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 13 cents, reporting net income of 88 cents per share against a mean estimate of profit of 75 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $845.2 million in revenue this quarter, a rise of 22.8% from the year ago quarter. Analysts are forecasting total revenue of $3.38 billion for the year, a rise of 23.8% from last year’s revenue of $2.73 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and none rating it as a hold.

A Look Back: In the second quarter, profit rose 35.7% to $111.2 million (88 cents a share) from $81.9 million (66 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 27.7% to $879.7 million from $688.8 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 22%, with the biggest boost coming in the first quarter when revenue rose 28.5% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 68.8% in the first quarter and 45.5% in the fourth quarter of the last fiscal year.

Competitors to Watch: Nu Skin Enterprises, Inc. (NYSE:NUS), USANA Health Sciences, Inc. (NASDAQ:USNA), Avon Products, Inc. (NYSE:AVP), Nature’s Sunshine Prod. (NASDAQ:NATR), The Estee Lauder Companies Inc. (NYSE:EL), Natural Health Trends Corp. (NHTC), Alberto-Culver Company (NYSE:ACV), Mannatech, Inc. (NASDAQ:MTEX), and Reliv International, Inc (NASDAQ:RELV).

Stock Price Performance: During September 27, 2011 to October 25, 2011, the stock price had dropped $1.79 (-3.1%) from $58.15 to $56.36. The stock price saw one of its best stretches over the last year between February 15, 2011 and February 28, 2011 when shares rose for nine-straight days, rising 17.1% (+$5.68) over that span. It saw one of its worst periods between September 27, 2011 and October 4, 2011 when shares fell for six-straight days, falling 13.9% (-$8.07) over that span. Shares are up $22.48 (+66.4%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.