Herbalife Ltd. (HLF) Q4 Earnings: What To Expect


Herbalife Ltd. (NYSE:HLF) is set to report its fourth quarter and full-year results on Tuesday, February 18 after the market close. The nutritional supplement maker will hold a conference call with investors on February 19 at 11:00 AM EST to discuss its financial results and business trends.

Herbalife likely to beat estimates

Wall Street expects Herbalife Ltd. (NYSE:HLF) to post yet another solid quarter despite questions around its sales practices. Analysts polled by Thomson Reuters expect the Cayman Islands-based company to report $1.24 per share in earnings, up 18.1% from $1.05 in the same period last year. Fourth quarter sales are expected to jump 17.6% YoY to $1.25 billion. Over the past four quarters, Herbalife has registered a sales growth of 18.5%. For the full-year 2013, analysts expect the company to post $4.81 billion in revenue and $5.32 per share in earnings.

On February 3, Herbalife Ltd. (NYSE:HLF) said it estimates its quarterly sales to jump 19.8% to $1.27 billion. The company forecasts Q4 adjusted EPS of $1.26-$1.30. The company expects its full year revenues to jump 18.5% with earnings of $5.35-$5.39 per share. Herbalife has maintained double-digit sales and earnings growth for the past several years. The company has a network of about 3 million distributors in 90 countries across the globe.

Herbalife weathers attacks from all sides

The nutritional supplement maker has been criticized for its business model. In late 2012, billionaire investor Bill Ackman of Pershing Square Capital began shorting the stock and called it a pyramid scheme. Herbalife Ltd. (NYSE:HLF) has denied those allegations. Last month, Senator Edward Markey asked the Federal Trade Commission and the Securities and Exchange Commission to investigate the company’s sales model, citing pyramid concerns. However, there haven’t been any reports of a regulatory probe into Herbalife’s business practices in the U.S.

Meanwhile, the company’s fundamental business remains strong. People have become more health conscious, boosting demand for Herbalife Ltd. (NYSE:HLF)’s products. Packaged food maker Post Holdings Inc (NYSE:POST) has been backing the company despite criticism by politicians and Ackman.

Herbalife Ltd. (NYSE:HLF) shares were up 2.29% to $67.94 at 1:00 PM EST on Tuesday.

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@valuewalk.com or on Twitter @VikShukla10

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