Companies and Brands
Herbalife Posts Strong Q2 Earnings Beat Despite Slumping Sales
Published:
Last Updated:
Local currency net sales grew by 1%, while reported net sales declined 11% primarily due to the continuing unfavorable impact of currency exchange rates.
The company gave guidance for the third quarter as net sales growth of -10% to -7% and EPS of $1.00 to $1.10. There are consensus estimates of $1.01 in EPS on $1.17 billion in revenue.
In terms of its segments the company reported (compared to the same period last year):
Michael Johnson, chairman and CEO of Herbalife, commented on earnings:
The second quarter continued the improving trends we saw in the previous quarter in terms of sales volumes and key sales leader metrics, and we believe we will see these positive trends continue through the second half of the year.
Johnson added:
Our Members around the world are more excited and engaged than ever as we invest in innovative new products and enhance our marketing and infrastructure to support their businesses and ensure we are putting customers first in all we do. We continue to see what we believe is the positive impact of the changes we implemented and remain confident that we are creating an even stronger platform for sustainable growth that will deliver long-term value for our shareholders.
At the end of the quarter, the company generated $197.6 million in net operating cash flow, and invested $16.2 million in capital expenditures. On the books, Herbalife had cash and cash equivalents of $749.6 million compared to $645.4 million at the end of December 2014.
Shares of Herbalife closed Wednesday down 2.4% at $49.10 on a 52-week trading range of $27.60 to $56.74. Following the release of the earnings report, shares were initially up 5.9% at $52.00 in the after-hours trading session. The stock has a consensus analyst price target of $64.25.
ALSO READ: 5 Analyst Stock Picks From July That Could Double
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.