Herbalife Beats on Both Top and Bottom Lines
Herbalife (NYS: HLF) reported earnings on Feb. 19. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Herbalife beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins contracted across the board.
Herbalife tallied revenue of $1.06 billion. The six analysts polled by S&P Capital IQ wanted to see revenue of $1.05 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $884.6 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 $1.05. The eight earnings estimates compiled by S&P Capital IQ forecast $1.01 per share. GAAP EPS of $1.05 for Q4 were 24% higher than the prior-year quarter's $0.85 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 46.5%, 100 basis points worse than the prior-year quarter. Operating margin was 15.1%, 10 basis points worse than the prior-year quarter. Net margin was 11.1%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $4.64.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 437 members out of 655 rating the stock outperform, and 218 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Herbalife a green thumbs-up, and 87 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Herbalife is outperform, with an average price target of $75.43.
Looking for alternatives to Herbalife? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Herbalife to My Watchlist.
The article Herbalife Beats on Both Top and Bottom Lines originally appeared on Fool.com.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. The Motley Fool has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd. 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.