Herbalife Ltd. Shares Rally After Earnings Beat

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Herbalife released its latest earnings report after closing bell tonight, posting adjusted earnings of $1.41 per share, a 10% increase year over year, on net sales of $1.1 billion, an 11% decline due to negative currency impacts. Excluding currency impacts, sales were flat year over year.

Analysts had been expecting the nutritional supplements company to post earnings of $1.25 per share on $1.17 billion in revenue. In the same quarter a year ago, Herbalife reported adjusted earnings of $1.28 per share on $1.27 billion in revenue.

Key metrics from Herbalife’s earnings report

Reported earnings increased 5% to $1.21 per share for the fourth quarter compared to $1.15 per share in the fourth quarter of 2013. Herbalife reported an annual retention rate of about 54.2% for its sales leaders. The company reported that was a record number of sales leaders retained in the year.

For the full year, the nutritional supplements company saw net sales rise 3% to $5 billion. Reported earnings for the full year were $3.40 per share, while adjusted earnings were $5.93 per share, a 10% year over year increase.

Herbalife Ltd. (NYSE:HLF) reported fourth quarter net sales of $204.8 million in North America and $245.6 million in the Asia Pacific region excluding China. In China, the company reported $177.1 million in sales, while in Europe, the Middle East and Africa, Herbalife saw $200.1 million in net sales. In Mexico, net sales were $132.7 million, while in South and Central America, net sales were $173.2 million for the fourth quarter.

Herbalife revises guidance

Herbalife Ltd. (NYSE:HLF) management said they now expect the 2015 fiscal year’s adjusted earnings to be between $4.10 and $4.50 per share. They revised their guidance due to negative impacts from currency exchange rates. For the current quarter, they expect adjusted earnings to be between $1.30 and $1.40 per share and reported earnings to be between $1 and $1.10 per share. Analysts are expecting to see adjusted earnings of $1.30 per share for the current quarter.

The company expects to see net sales decline by between 15.5% and 12.5% for the current quarter and by between 9% and 6% for the full year.

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