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

Herbalife (NYSE:HLF) announced 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. Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The business had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.31 billion. During the same period last year, the company posted $0.59 EPS. Herbalife’s revenue for the quarter was up 5.4% on a year-over-year basis.

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 Performance

Shares of NYSE HLF traded up $0.82 during mid-day trading on Friday, hitting $12.33. The stock had a trading volume of 2,320,957 shares, compared to its average volume of 1,501,364. Herbalife has a 1 year low of $7.56 and a 1 year high of $20.40. The business has a 50 day moving average price of $12.26 and a two-hundred day moving average price of $14.52. The firm has a market cap of $1.28 billion, a P/E ratio of 7.96, a price-to-earnings-growth ratio of 0.63 and a beta of 0.87.

Insiders Place Their Bets

In other Herbalife news, COO Troy Hicks sold 10,000 shares of the stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $12.32, for a total transaction of $123,200.00. Following the completion of the sale, the chief operating officer owned 9,706 shares of the company’s stock, valued at $119,577.92. This represents a 50.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Frank Lamberti sold 134,982 shares of the stock in a transaction 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 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 position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 191,296 shares of company stock valued at $2,551,678 over the last quarter. 5.13% of the stock is currently owned by company insiders.

Institutional Trading of Herbalife

A number of institutional investors have recently modified their holdings of the company. Geode Capital Management LLC increased its holdings in Herbalife by 1.0% during the 4th quarter. Geode Capital Management LLC now owns 2,577,634 shares of the company’s stock valued at $33,231,000 after purchasing an additional 25,783 shares during the period. Quantedge Capital Pte Ltd lifted its holdings in Herbalife by 5.2% in the 4th quarter. Quantedge Capital Pte Ltd now owns 2,249,683 shares of the company’s stock worth $28,998,000 after buying an additional 111,700 shares during the period. Solel Partners LP lifted its holdings in Herbalife by 18.7% in the 2nd quarter. Solel Partners LP now owns 1,669,405 shares of the company’s stock worth $14,390,000 after buying an additional 262,614 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Herbalife by 3.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,451,749 shares of the company’s stock worth $18,713,000 after buying an additional 52,642 shares during the last quarter. Finally, Manatuck Hill Partners LLC grew its position in shares of Herbalife by 122.2% in the 3rd quarter. Manatuck Hill Partners LLC now owns 1,000,000 shares of the company’s stock worth $8,440,000 after buying an additional 550,000 shares during the last quarter.

Analyst Ratings Changes

Several analysts have weighed in on HLF shares. Mizuho set a $17.00 price target on shares of Herbalife in a research note on Monday, May 4th. Weiss Ratings cut Herbalife from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, July 24th. Royal Bank Of Canada decreased 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. Wall Street Zen lowered Herbalife from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Finally, Zacks Research lowered Herbalife from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 20th. Three 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 presently has an average rating of “Hold” and an average target price 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.