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

Herbalife (NYSE:HLF) announced its quarterly earnings results on Wednesday. The company reported $0.51 earnings per share for the quarter, missing analysts’ consensus estimates of $0.54 by ($0.03), FiscalAI reports. Herbalife had a negative return on equity of 43.90% and a net margin of 3.16%.The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period in the prior year, the business earned $0.59 earnings per share. The company’s revenue for the quarter was up 5.4% compared to the same quarter last year.

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 Up 7.2%

Shares of NYSE:HLF traded up $0.82 during midday trading on Friday, reaching $12.33. 2,320,957 shares of the company were exchanged, compared to its average volume of 1,501,364. The firm has a market cap of $1.28 billion, a PE ratio of 7.96, a P/E/G ratio of 0.63 and a beta of 0.87. Herbalife has a fifty-two week low of $7.56 and a fifty-two week high of $20.40. The stock has a fifty day simple moving average of $12.26 and a two-hundred day simple moving average of $14.52.

Insider Transactions at Herbalife

In other Herbalife news, COO Troy Hicks sold 38,377 shares of Herbalife stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $12.93, for a total value of $496,214.61. Following the sale, the chief operating officer owned 9,062 shares of the company’s stock, valued at $117,171.66. This trade represents a 80.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Frank Lamberti sold 134,982 shares of the company’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $13.50, for a total value of $1,822,257.00. Following the transaction, the insider directly owned 36,624 shares of the company’s stock, valued at $494,424. This represents a 78.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 191,296 shares of company stock valued at $2,551,678. Corporate insiders own 5.13% of the company’s stock.

Hedge Funds Weigh In On Herbalife

Large investors have recently bought and sold shares of the company. AQR Capital Management LLC raised its holdings in shares of Herbalife by 236.8% in the first quarter. AQR Capital Management LLC now owns 133,245 shares of the company’s stock valued at $1,150,000 after purchasing an additional 93,686 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Herbalife by 4.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 59,964 shares of the company’s stock worth $517,000 after purchasing an additional 2,523 shares during the last quarter. Empowered Funds LLC grew its position in Herbalife by 12.9% in the first quarter. Empowered Funds LLC now owns 30,301 shares of the company’s stock valued at $261,000 after purchasing an additional 3,474 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Herbalife by 3.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 210,904 shares of the company’s stock valued at $1,820,000 after purchasing an additional 6,747 shares in the last quarter. Finally, Envestnet Asset Management Inc. bought a new position in Herbalife in the second quarter valued at $118,000.

Wall Street Analyst Weigh In

Several brokerages recently commented on HLF. Wall Street Zen downgraded Herbalife from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Citigroup reissued a “buy” rating and issued a $17.00 target price (down from $21.00) on shares of Herbalife in a research note on Friday. Zacks Research downgraded Herbalife from a “strong-buy” rating to a “hold” rating in a report on Monday, April 20th. Royal Bank Of Canada dropped their price target on Herbalife from $17.00 to $16.00 and set a “sector perform” rating on the stock in a research report on Tuesday, April 28th. Finally, Mizuho set a $17.00 price objective on Herbalife in a research report on Monday, May 4th. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Herbalife presently has a consensus rating of “Hold” and an average price target 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.