Health and wellness products company Herbalife (NYSE:HLF) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
Herbalife missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $1.24 billion, down 3.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Herbalife a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Herbalife’s revenue to decline 1.2% year on year to $1.20 billion, a reversal from the 2.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herbalife has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Herbalife’s peers in the personal care segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Estée Lauder’s revenues decreased 6.4% year on year, beating analysts’ expectations by 0.7%, and Nu Skin reported a revenue decline of 8.8%, topping estimates by 2.2%. Estée Lauder traded down 20.4% following the results while Nu Skin was up 17.8%.
Read our full analysis of Estée Lauder’s results here and Nu Skin’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the personal care stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.7% on average over the last month. Herbalife is down 13.4% during the same time and is heading into earnings with an average analyst price target of $9.30 (compared to the current share price of $5.69).
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