Earnings Review and Free Research Report: Herbalife’s Q1 Results Beat Forecasts

Research Desk Line-up: Edgewell Personal Care Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Herbalife Ltd (NYSE: HLF), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=HLF, following the Company’s disclosure of its financial results on August 01, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Los Angeles, California-based Company’s adjusted diluted EPS improved on a year-over-year basis, outperforming market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Personal Products industry. Pro-TD has currently selected Edgewell Personal Care Company (NYSE: EPC) for due-diligence and potential coverage as the Company announced on August 08, 2017, its financial results for Q3 FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Edgewell Personal Care when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HLF; also brushing on EPC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=HLF

http://protraderdaily.com/optin/?symbol=EPC

Earnings Reviewed

During the quarter ended on June 30, 2017, Herbalife’s worldwide net sales fell 5% to $1.15 billion from $1.20 billion recorded at the end of Q2 FY16. However, net sales numbers topped market consensus estimates of $1.10 billion for Q2 FY17. On a constant currency basis, the Company’s net sales fell 3% y-o-y. Furthermore, sales volume was down by 8% to 1.36 billion in Q2 FY17.

The seller of supplements and weight-loss products reported net income of $137.6 million, or $1.61 per diluted share, in Q2 FY17 versus net loss of $22.9 million, or $0.28 loss per diluted share, in Q2 FY16. Meanwhile, the Company’s adjusted net income grew to $129.1 million, or $1.51 per diluted share, during Q2 FY17 from $111.2 million, or $1.29 per diluted share, in the previous year’s same quarter. Wall Street had expected the Company to report adjusted net income of $1.10 per diluted share.

Operational Metrics

For the reported quarter, the Company’s cost of sales was $218.8 million, lower than the $236.3 million reported in Q2 FY16. The Company’s gross profit came in at $928.1 million for Q2 FY17 compared to $965.5 million in the prior year’s corresponding quarter. The Company’s GAAP gross margin stood at 80.9% for Q2 FY17 versus 80.3% in Q2 FY16. Selling, general, and administrative expenses (SG&A) was $443.2 million in Q2 FY17 compared to $676.8 million in Q2 FY16. The Company posted operating income of $204.9 million in Q2 FY17 compared to operating loss of $19.9 million in Q2 FY16.

Geographical Revenues

In Q2 FY17, Herbalife’ revenues from North America fell to $218.4 million from $266.5 million in Q2 FY16. Mexico region’s revenue contribution came in at $115.6 million for Q2 FY17 compared to $119.3 million in Q2 FY16. Revenues from South and Central America declined to $110.0 million in Q2 FY17 from $119.9 million in the last year’s comparable quarter. Meanwhile, the revenues from EMEA region increased to $224.7 million during the reported quarter from $219.0 million in Q2 FY16. Herbalife’ revenues from Asia/Pacific region increased marginally to $235.5 million in Q2 FY17 from $234.6 million in Q2 FY16. Furthermore, revenues contribution from China was $242.7 million for Q2 FY17 compared to $242.5 million in Q2 FY16.

Cash Flow & Balance Sheet

During first six months of FY17, Herbalife’s net cash provided by operating activities were $277.1 million compared to $368.0 million in the year ago comparable quarter. At the close of books in the reported quarter, Herbalife had $1.62 billion in cash and cash equivalents as on June 30, 2017, compared to $844.0 million at the close of books on December 31, 2016. Furthermore, long-term debt balance as on June 30, 2017, stood at $2.19 billion compared to $1.44 billion as on December 31, 2016.

Share Repurchase

Since the inception of share repurchase program in February 2017, the Company has repurchased, a total of approximately 4.6 million shares with approximately 2.5 million shares repurchased during the period of May 01, 2017, through July 31, 2017

Outlook

The Company raised its reported EPS guidance for full-year FY17 to a range of $3.80 to $4.20 up from the previous ranges of $3.30 to $3.70. The adjusted diluted EPS outlook for FY17 is now projected to be in the range of $4.30 to $4.70 from the prior guidance range of $4.10 to $4.50.

In its outlook for Q3 FY17, the Company projects diluted EPS in the range of $0.48 to $0.68, while adjusted diluted EPS is expected to be in the range of $0.65 to $0.85.

Stock Performance

At the closing bell, on Wednesday, August 16, 2017, Herbalife’s stock climbed 1.09%, ending the trading session at $63.13. A total volume of 1.47 million shares have exchanged hands, which was higher than the 3-month average volume of 1.07 million shares. The Company’s stock price advanced 2.27% in the past six months. Moreover, the stock surged 31.14% since the start of the year. The stock is trading at a PE ratio of 13.25 and currently, has a market cap of $5.89 billion.

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