Herbalife (NYSE:HLF) Issues Earnings Results

Herbalife (NYSE:HLF) issued its quarterly earnings data on Wednesday. The company reported $0.51 EPS for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.03), FiscalAI reports. The firm had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.31 billion. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%.The business’s quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the firm 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 HLF traded up $0.82 during midday trading on Friday, hitting $12.33. The company had a trading volume of 2,320,957 shares, compared to its average volume of 1,501,364. The company’s 50 day moving average price is $12.26 and its 200 day moving average price is $14.52. The stock has a market cap of $1.28 billion, a price-to-earnings ratio of 7.96, a PEG ratio of 0.63 and a beta of 0.87. Herbalife has a 52 week low of $7.56 and a 52 week high of $20.40.

Insider Activity

In related news, insider Frank Lamberti sold 134,982 shares of the business’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $13.50, for a total value of $1,822,257.00. Following the completion of the sale, the insider directly owned 36,624 shares of the company’s stock, valued at $494,424. The trade was a 78.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, COO Troy Hicks sold 38,377 shares of the business’s 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 completion of 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 SEC filing for this sale provides additional information. Insiders have sold 191,296 shares of company stock worth $2,551,678 in the last ninety days. Corporate insiders own 5.13% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in HLF. Caitong International Asset Management Co. Ltd bought a new stake in shares of Herbalife in the 4th quarter valued at approximately $32,000. Advisory Services Network LLC acquired a new stake in shares of Herbalife during the 3rd quarter valued at approximately $65,000. Quarry LP lifted its stake in Herbalife by 49,105.3% during the third quarter. Quarry LP now owns 9,349 shares of the company’s stock worth $79,000 after purchasing an additional 9,330 shares during the last quarter. Lazard Asset Management LLC lifted its stake in Herbalife by 30.4% during the third 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 during the last quarter. Finally, Envestnet Asset Management Inc. bought a new position in Herbalife during the second quarter worth $118,000.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Citigroup reaffirmed a “buy” rating and set a $17.00 target price (down from $21.00) on shares of Herbalife in a research report on Friday. Zacks Research downgraded Herbalife from a “strong-buy” rating to a “hold” rating in a report on Monday, April 20th. Royal Bank Of Canada dropped their price objective on Herbalife from $17.00 to $16.00 and set a “sector perform” rating on the stock in a report on Tuesday, April 28th. Weiss Ratings downgraded Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, July 24th. Finally, Wall Street Zen lowered Herbalife from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $17.00.

About Herbalife

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.