Herbalife (NYSE:HLF) Announces Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Herbalife (NYSE:HLF) posted its quarterly earnings data on Monday. The company reported $0.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.02, FiscalAI reports. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.31 billion.

Herbalife Trading Up 2.7%

HLF traded up $0.36 during trading hours on Monday, hitting $13.41. 1,837,788 shares of the company’s stock were exchanged, compared to its average volume of 1,562,692. The firm has a market cap of $1.41 billion, a P/E ratio of 8.65, a price-to-earnings-growth ratio of 0.43 and a beta of 0.74. Herbalife has a 12-month low of $7.68 and a 12-month high of $20.40. The firm has a 50 day moving average of $12.71 and a 200 day moving average of $14.01.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on HLF shares. Wall Street Zen downgraded Herbalife from a “buy” rating to a “hold” rating in a research report on Sunday. Zacks Research cut Herbalife from a “strong-buy” rating to a “hold” rating in a research report on Thursday. Weiss Ratings reiterated a “hold (c)” rating on shares of Herbalife in a research report on Thursday, October 22nd. Citigroup reissued a “buy” rating and issued a $17.00 price objective (down from $21.00) on shares of Herbalife in a research note on Friday, August 7th. Finally, UBS Group set a $21.00 price objective on Herbalife in a report on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Herbalife presently has an average rating of “Moderate Buy” and a consensus target price of $17.67.

Herbalife announced that its Board of Directors has authorized a stock repurchase program on Tuesday, September 8th that allows the company to buy back $250 million in shares. This buyback authorization allows the company to reacquire up to 19.3% of its stock through open market purchases. Share buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

About Herbalife

Herbalife Ltd. (NYSE: HLF) is a global nutrition and wellness company that develops and distributes products through a network of independent members and distributors. Its offerings include meal-replacement shakes, protein and other dietary supplements, vitamins, sports nutrition products, and personal-care items.

Founded in 1980 by Mark Hughes, Herbalife sells its products through direct-selling channels rather than primarily through traditional retail stores. Independent distributors market the products, provide product guidance, and may operate nutrition clubs or similar community-based businesses.

The company serves customers across numerous markets in North America, Latin America, Europe, Asia-Pacific, and other regions.