Herbalife Beats Analyst Estimates on EPS
Herbalife (NYS: HLF) reported earnings on April 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Herbalife met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Gross margins increased, operating margins contracted, net margins dropped.
Herbalife chalked up revenue of $1.12 billion. The five analysts polled by S&P Capital IQ hoped for net sales of $1.11 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $964.2 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 $1.27. The seven earnings estimates compiled by S&P Capital IQ predicted $1.06 per share. Non-GAAP EPS of $1.27 for Q1 were 44% higher than the prior-year quarter's $0.88 per share. GAAP EPS of $1.10 for Q1 were 25% higher than the prior-year quarter's $0.88 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 79.9%, much better than the prior-year quarter. Operating margin was 15.0%, 100 basis points worse than the prior-year quarter. Net margin was 10.6%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $1.27.
Next year's average estimate for revenue is $4.62 billion. The average EPS estimate is $4.66.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 456 members out of 666 rating the stock outperform, and 210 members rating it underperform. Among 180 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 104 give Herbalife a green thumbs-up, and 76 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 $61.43.
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The article Herbalife Beats Analyst Estimates on EPS 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.
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