Herbalife Lifts its Full Year Earnings Outlook (HLF)
Nutrients supplements and skin care products provider, Herbalife Ltd. (NYSE: HLF) reported better-than-expected fiscal first quarter earnings on late on Monday.
Although the company provided downbeat outlook on the second quarter, it boosted its full-year guidance.
For the quarter, the Company reported net income of $118.9 million or $1.10 a share up from $108.2 million or 88 cents a share, in the same quarter of last year. Stripping out onetime items, adjusted earnings stood at $1.27 a share compared to 88 cents, in the same quarter of last year. Revenue for the period soared 14% to $1.10 billion from $964 million.
Analysts polled by Thomson Reuters were expecting earnings of $1.06 a share on revenue of $1.12 billion.
For the full-year fiscal, Herbalife now expects earnings to come in the range of $4.60 to $4.80 a share while analysts’ consensus estimate was of $4.66 a share.
For the fiscal second quarter, Herbalife anticipates earnings to be in the range of $1.14 to $1.18 a share compared to analysts’ expectation of $1.26 a share. The Company expects revenue growth of 11% to 13 % while the Wall Street analysts were expecting a growth of 14%.
The Company has been marred with controversies in the recent past.
In December, billionaire investor, Bill Ackman alleged that Herbalife’s business model was based on a “pyramid scheme”. Bill Ackman’s hedge fund, Pershing Square Capital took a short position on the stock, amounting billion of dollars.
The Company said that doubts raised against its business model and subsequent response to such allegation lowered earnings by 7 cents a share.
Few weeks back, audit firm KPMG was forced to resign as the auditor for Herbalife after a senior partner was found to be at the centre of an insider trading investigations. He was subsequently fired from the firm.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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