Herbalife Ltd. (NYSE: HLF)
Yesterday, Herbalife declined throughout the day as investors braced for a poor earnings report. However, the earnings report for the company’s fourth quarter came in before the bell today, and proved to be much better than expected. As a result, we’re seeing massive gains on the stock in early trading today. Below, we’ll talk about what we saw from earnings, how investors reacted to the news, and what we can expect to see from HLF moving forward. So, let’s get right to it!
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HLF Produces Solid Earnings
As mentioned above, Herbalife produced its earnings report before the opening bell this morning, beating all expectations and exciting investors. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, HLF did incredibly well. During the quarter, analysts expected the company to produce earnings in the amount of $0.94 per share. However, the company actually produced earnings in the amount of $1.19 per share, blowing analyst expectations out of the water with a 26%+ earnings surprise!
- Revenue – Revenue for the quarter also came in well ahead of expectations. In the fourth quarter, analysts expected HLF to produce $1.06 billion in revenue. However, the company actually generated $1.10 billion in revenue for the quarter.
- Guidance – As if beating earnings and revenue expectations wasn’t enough to get investors excited, Herbalife also reported guidance for the first quarter as well as the entire 2016 year. For the first quarter, HLF expects to generate between $0.97 and $1.07 per share in earnings. On a full year basis, the company expects to generate earnings per share in the range between $4.05 and $4.50.
How The Market Reacted To The News
As investors, we’ve learned that any time we see positive news with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with that company. Not only that, there are few pieces of news that have the ability to move the needle quite like strong earnings. So naturally, after producing an overwhelmingly strong earnings report, HLF is currently climbing in the market in a big way. Currently (10:12), the stock is trading at $56.55 per share after a gain of $10.79 per share or 23.58% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from HLF. The reality is that investors are ultimately investing for growth and Herbalife is a great place to realize growth. The company has a strong earnings history, beating earnings expectations over the past 4 consecutive quarters. On top of strong earnings, HLF has a solid line of products, a great team, and a solid plan for growth moving forward. All in all, things are looking great for the stock and all who decide to get involved.
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What Do You Think?
Where do you think HLF is headed and why? Let us know your opinion in the comments below!
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