Herbalife (NYSE:HLF) Announces Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Herbalife beat quarterly expectations: Earnings per share came in at $0.64, $0.02 above consensus, while revenue reached $1.35 billion versus the $1.31 billion estimate.
• The company authorized a $250 million stock buyback, allowing it to repurchase up to 19.3% of outstanding shares—potentially signaling management views the stock as undervalued.
• Analyst sentiment remains mixed but leans positive, with an overall “Moderate Buy” rating and an average price target of $17.67, compared with the stock’s recent price of $13.41.

Herbalife (NYSE:HLF - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.02, FiscalAI reports. Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The company had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.31 billion.

Herbalife Price Performance

NYSE HLF traded up $0.36 during trading hours on Monday, reaching $13.41. The company's stock had a trading volume of 1,837,788 shares, compared to its average volume of 1,562,692. The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of 8.65, a P/E/G ratio of 0.43 and a beta of 0.74. The company's 50-day moving average is $12.71 and its two-hundred day moving average is $14.01. Herbalife has a 1-year low of $7.68 and a 1-year high of $20.40.

Herbalife declared that its Board of Directors has authorized a stock buyback plan on Tuesday, September 8th that allows the company to repurchase $250 million in outstanding shares. This repurchase authorization allows the company to buy up to 19.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Analyst Ratings Changes

A number of research firms have recently weighed in on HLF. Zacks Research lowered shares of Herbalife from a "strong-buy" rating to a "hold" rating in a research note on Thursday. Citigroup restated a "buy" rating and set a $17.00 target price (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. Wall Street Zen lowered shares of Herbalife from a "buy" rating to a "hold" rating in a report on Sunday. UBS Group set a $21.00 price target on Herbalife in a research report on Thursday, September 17th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Herbalife in a research note on Thursday, October 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $17.67.

Herbalife Company Profile

Herbalife Ltd. NYSE: HLF is a global nutrition and wellness company that develops and distributes products through a network of independent members and distributors. Its offerings include meal-replacement shakes, protein and other dietary supplements, vitamins, sports nutrition products, and personal-care items.

Founded in 1980 by Mark Hughes, Herbalife sells its products through direct-selling channels rather than primarily through traditional retail stores. Independent distributors market the products, provide product guidance, and may operate nutrition clubs or similar community-based businesses.

The company serves customers across numerous markets in North America, Latin America, Europe, Asia-Pacific, and other regions.

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