Herbalife Ltd. (NYSE: HLF)
Herbalife has had a bit of a PR nightmare in the midst of a battle with Ackman. However, the company has dealt a big blow in the battle with positive earnings and their investors absolutely love it! Today, we’ll talk about what we saw from earnings, how the market reacted, and what we can expect to see moving forward. So, let’s get right to it…
Herbalife Reports Beats Earnings Expectations
Herbalife reported their earnings as expected yesterday after the bell. Here are the main points we saw in the report…
- EPS – Earnings per share came in at $1.29 for the first quarter; beating expectations of $1.01 per share by $0.28!
- Top Line Revenue – The company also beat analyst expectations with regard to overall revenue. While there was a 12% year over year decline, the figure came in at $1.11 billion; beating analyst expectations of $1.08 billion.
- Guidance – HLF raised guidance of entire year EPS from between $4.10 and $4.50 to between $4.30 and $4.60.
How The Market Reacted To The Earnings Report
As mentioned above, investors are absolutely loving HLF right now. The company’s stock great massively in after hours trading last night and continues to rise today. Currently (1:09), HLF is trading at $48.64 per share after a gain of 21.33% so far today.
What We Can Expect From HLF Moving Forward
In my opinion, Herbalife is a great company with a great product that’s been dealt a bad hand in the market recently. There’s no doubt that PR battles between HLF and Ackman have weighed on the stock. However, with their most recent earnings report, Herbalife put many of the questions raised by Ackman’s accusations to rest. With all of that said, I’m expecting to see more upward momentum from both the short term and long term perspective.
What Do You Think?
Where do you think HLF is headed and why? Let us know in the comments below!