Herbalife (NYSE:HLF) Posts Earnings Results, Misses Estimates By $0.03 EPS

Herbalife (NYSE:HLF) released its quarterly earnings data on Wednesday. The company reported $0.51 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.03), FiscalAI reports. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.31 billion. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%.Herbalife’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period last year, the company earned $0.59 EPS.

Here are the key takeaways from Herbalife’s conference call:

• Second-quarter net sales rose 5.4% year over year to $1.3 billion, at the high end of guidance, while adjusted EBITDA reached $167 million. Volume increased 5.8%, marking the fourth consecutive quarter of year-over-year growth.
• Management raised the midpoint of its full-year constant-currency net sales and adjusted EBITDA outlook, now expecting sales growth of 2.5%-5.5% and constant-currency adjusted EBITDA of $690 million-$710 million.
• Regional performance remained uneven: India led growth with a 47% constant-currency sales increase and North America returned to slight growth, while EMEA declined 5.6% and China fell 29% on a constant-currency basis.
• Herbalife launched personalized nutrition offerings including Bioniq GO, expanded its Pro2col digital health platform and began beta testing at-home blood biomarker integration. Management views these initiatives, along with Life I/O products, as avenues to broaden its customer base and participate in the growing personalized nutrition market.
• First-half operating cash flow increased 52% to $147 million, and refinancing reduced quarterly net interest expense to $37 million from $54 million a year earlier. The company remains focused on reducing net leverage below two times by year-end and repaying more than $600 million of debt by the end of 2028.

Herbalife Stock Up 7.2%

Shares of NYSE:HLF traded up $0.82 during midday trading on Friday, reaching $12.33. 2,320,957 shares of the company traded hands, compared to its average volume of 1,501,364. The firm’s fifty day moving average price is $12.26 and its two-hundred day moving average price is $14.52. The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of 7.96, a price-to-earnings-growth ratio of 0.63 and a beta of 0.87. Herbalife has a 12 month low of $7.56 and a 12 month high of $20.40.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on HLF shares. Mizuho set a $17.00 price target on Herbalife in a research note on Monday, May 4th. Zacks Research cut Herbalife from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 20th. Citigroup restated a “buy” rating and set a $17.00 price objective (down from $21.00) on shares of Herbalife in a report on Friday. Wall Street Zen downgraded shares of Herbalife from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Finally, Weiss Ratings lowered shares of Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, July 24th. Three analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $17.00.

Insider Activity

In other news, COO Troy Hicks sold 38,377 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $12.93, for a total value of $496,214.61. Following the sale, the chief operating officer directly owned 9,062 shares of the company’s stock, valued at approximately $117,171.66. This represents a 80.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Frank Lamberti sold 134,982 shares of the firm’s stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $13.50, for a total transaction of $1,822,257.00. Following the completion of the transaction, the insider owned 36,624 shares of the company’s stock, valued at $494,424. This trade represents a 78.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 191,296 shares of company stock valued at $2,551,678. 5.13% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd bought a new stake in Herbalife during the fourth quarter worth about $32,000. Advisory Services Network LLC purchased a new stake in Herbalife during the 3rd quarter valued at $65,000. Quarry LP boosted its stake in Herbalife by 49,105.3% during the 3rd quarter. Quarry LP now owns 9,349 shares of the company’s stock valued at $79,000 after purchasing an additional 9,330 shares during the last quarter. Lazard Asset Management LLC increased its holdings in shares of Herbalife by 30.4% in the 3rd quarter. Lazard Asset Management LLC now owns 13,346 shares of the company’s stock worth $113,000 after purchasing an additional 3,112 shares in the last quarter. Finally, Envestnet Asset Management Inc. bought a new stake in shares of Herbalife in the 2nd quarter worth $118,000.

Herbalife Company Profile

Herbalife Nutrition Ltd. (NYSE: HLF) operates as a global multi-level marketing company specializing in weight-management, nutritional supplement, sports nutrition and personal care products. Its portfolio includes protein shakes, vitamins, energy and fitness supplements, hydration products and skin and hair care items, all formulated to support wellness, performance and healthy living. Products are manufactured in GMP-certified facilities to ensure consistent quality and safety standards.

Founded in 1980 by Mark R.