With Ackman Unwilling To Back Down, Does Herbalife Ltd. (HLF) Have Any Chance Of Returning To Profit And Sales Growth This Quarter? by Estimize
Herbalife Ltd. (HLF) – Consumer Staples – Household & Personal Products | Reports February 25, After Market Closes
Herbalife Ltd. (HLF) 4Q Earnings – Key Takeaways
- The Estimize Select Consensus is calling for EPS of $0.97, 5 cents higher than Wall Street, and revenue expectations of $1.06 billion, roughly $7 million greater than the Street
- Currency headwinds along with weak economic conditions have weighed heavily on Herbalife’s sales and volume growth
- Bill Ackman has made ongoing accusations against the company for running a pyramid scheme
- What are you expecting for HLF? Get your estimate in here!
Global nutrition and wellness company, Herbalife, is scheduled to report fourth quarter earnings February 25, after the market closes.The company operates on multiple levels selling nutritional supplements, weight management and personal care products. Herbalife has perennially reported better than expected earnings and has beat on the bottom line in each of the past 4 quarters. Historically, the company has trumped Wall Street’s EPS estimate 93% of the time. As a result, shares have skyrocketed 35.84% in the past 12 months, despite rolling accusations of running a pyramid scheme.
This quarter the Estimize mean is calling for EPS of $0.99, 7 cents higher than Wall Street, and revenue expectations of $1.07 billion, roughly $20 million greater than the Street. However, the Select Consensus, a weighted average of the most historically accurate analysts and most recent estimates, falls right between the Estimize mean and Wall Street Consensus with EPS of $0.97 and revenue of $1.06 billion. Compared to Q4 2014, this predicts to be a YoY decline of 27% on earnings and 4% on sales.
Currency headwinds along with weak economic conditions have weighed heavily on sales and volume growth. This quarter the company is expecting sales to decline between 5% and 8% with volume potentially growing 1.5%. Herbalife is beginning to see volume improvement in 3 of its 4 key markets; the U.S., Mexico, and Brazil. The fourth major market ,Venezuela has fared far worse, failing to overcome volatile macroeconomic and geopolitical conditions surrounding the country.
Unfavorable currency headwinds have been the biggest obstacle contributing to Herbalife’s year over year earnings declines. Moreover, Herbalife has been faced with increased scrutiny following Bill Ackman’s accusation that the company running a pyramid scheme. His ongoing allegations have prompted investigations by the SEC, FTC and FBI. Regardless of whether this is factual, these ongoing claims will have an adverse impact on the company’s reputation and share prices.
Do you think HLF can beat estimates? There is still time to get your estimate in here!
