Herbalife Outruns Estimates Again
Herbalife (NYS: HLF) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Herbalife beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins improved across the board.
Herbalife logged revenue of $884.6 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $856.6 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $738.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.86. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.72 per share. GAAP EPS of $0.86 for Q4 were 146% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.7%, 80 basis points better than the prior-year quarter. Operating margin was 15.2%, 80 basis points better than the prior-year quarter. Net margin was 11.9%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $875.1 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $3.76 billion. The average EPS estimate is $3.49.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 352 members out of 475 rating the stock outperform, and 123 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give Herbalife a green thumbs-up, and 47 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Herbalife is buy, with an average price target of $69.50.
- Add Herbalife to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.