Herbalife Shares Jump After Incredible Earnings Report

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Herbalife Ltd. (NYSE: HLF) reported its first-quarter financial results after the markets closed on Thursday. The company said that it had $1.24 in earnings per share (EPS) and $1.1 billion in revenue, compared with consensus estimates from Thomson Reuters of $0.89 in EPS and revenue of $1.05 billion. The same period of last year reportedly had EPS of $1.36 and $1.12 billion in revenue.

In terms of its business segments, Herbalife reported revenues as follows:

  • North America had revenues of $229.8 million, down from $246.0 year over year.
  • Mexico posted revenues of $104.8 million, down slightly from $109.7.
  • South and Central America had revenues of $122.4 million, a decrease from $127.0 million.
  • Asia-Pacific saw its revenues decrease to $219.7 million from $221.1 in the same period of last year.
  • China had its revenues decrease slightly to $215.6 million from $217.4 million year over year.

As for guidance for the 2017 full year, the company is raising its previously issued reported and adjusted diluted EPS outlook to a range of $3.25 to $3.65 and $4.05 to $4.45, respectively. That is up from the previous ranges of $2.95 to $3.35 and $3.65 to $4.05, respectively.

Consensus estimates call for $3.96 in EPS and $4.54 billion in revenue for the full year.

On the books, Herbalife cash and cash equivalents totaled $1.78 billion at the end of the quarter, up from $844.0 million at the end of December 2016.

Michael O. Johnson, board chair and chief executive, Herbalife, commented:

We’ve made a solid start to 2017 exceeding our EPS guidance. As we transition this June to our new CEO Rich Goudis and my role as Executive Chairman, we are more resolute than ever in making a profound and lasting effect on the nutritional habits of the world and offering people an opportunity to earn in the process.

Shares of Herbalife were last seen up nearly 12% at $69.50 on Friday, with a consensus analyst price target of $68.25 and a 52-week trading range of $47.62 to $72.22.