Published on April 6th, 2017 | by itadmin
Herbalife Posts Earnings for Q4 That Came in Higher Than Estimates – Shares Advance
Herbalife Ltd (HLF) recently posted their financial results for the fourth quarter of the 2017 fiscal year. Their earnings were higher than the market and analysts expected, leading to the company based in George Town, the Cayman Islands seeing their stock advance by 1.6 percent during after-hours trading.
The company, thus, posted a net income for the quarter of $103.3 million, which works out to earnings per share of $1.21. This is compared to the same quarter of the previous year, when the company generated a net income of $123.5 million, which worked out to earnings per share of $1.15 at the time. The company’s adjusted EPS increase from $1.28 to $1.41.
Herbalife’s revenues declined by 11 percent, thus reaching $1.13 billion. Analysts, though, had expected the company to post earnings per share of $1.22, while revenues were expected to come in at $1.16 billion.
Michael Johnson, the Chief Executive Officer of Herbalife, stated that the revised outlook posted by the company is an indication of the foreign currency environment that all global companies are being forced to deal with. He also claimed that it was the result of the volume impact over the short term of the improvements they are making. Furthermore, they believe the company is implementing the right strategy for the long term and they are confident in the fact that they can create value that is sustainable for the millions of members of Herbalife, their customers, as well as the company’s shareholders.
For Q1, the company is expecting to generate adjusted earnings per share between $1.3 and $1.4, and they are also predicting their sales will drop between 12.5 percent and 15.5 percent. For the entire year, the company is forecasting adjusted earnings per share between $5.3 and $5.7, while sales are expected to drop between 6 and 9 percent.
Herbalife shares advance by 1.67 percent, to reach a trading price of $35.4 after market close. The company has been trading between $27.6 and $69.69 over the past 52 weeks. Herbalife has a market cap of $2.86 billion, while their price to earnings ratio of 8.78.
It should be noted that Herbalife reduced the pay of their CEO, Michael Johnson, by 36 percent for FY 2017 because the company didn’t meet the performance goals that had been established for the top executives of the firm. Johnson received $6.73 million in compensation instead of the $10.5 million he received in 2017.