Herbalife Ltd. Earnings: Enjoys Fifth Straight Quarter of Double-Digit Growth
Herbalife Ltd. (NYSE:HLF) reported its results for the third quarter. Herbalife is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products.
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Herbalife Ltd. Earnings Cheat Sheet
Results: Net income for Herbalife Ltd. rose to $117.8 million ($1.04 per share) vs. $108 million (87 cents per share) in the same quarter a year earlier. This marks a rise of 9% from the year-earlier quarter.
Revenue: Rose 13.6% to $1.02 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Herbalife Ltd. beat the mean analyst estimate of $1.01 per share. It beat the average revenue estimate of $892.9 million.
Quoting Management: “Our business momentum has continued through the third quarter with double digit volume growth from all six of our geographical regions,” said Michael O. Johnson, the company’s chairman and CEO. “Our 2013 guidance for double-digit volume and EPS growth illustrates our belief in continued growth driven by the ongoing global expansion of daily consumption and our city by city approach to deepen our penetration in existing markets.”
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.4%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 30% from the year earlier quarter.
The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 20% and in the first quarter, the figure rose 23.5%.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 14 cents in the second quarter, by 7 cents in the first quarter, and by 13 cents in the fourth quarter of the last fiscal year.
Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 98 cents per share, up from 96 cents ninety days ago. The average estimate for the fiscal year is $3.97 per share, a rise from $3.80 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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