Health and wellness products company Herbalife (NYSE: HLF) will be announcing earnings results this Monday afternoon. Here’s what you need to know.
Herbalife beat analysts’ revenue expectations last quarter, reporting revenues of $1.33 billion, up 5.4% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.
Is Herbalife a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Herbalife’s revenue to grow 2.8% year on year, in line with the 2.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Herbalife has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Herbalife’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Medifast’s revenues decreased 19.4% year on year, beating analysts’ expectations by 1%, and Vita Coco reported revenues up 33.7%, topping estimates by 6.1%. Medifast traded up 5.1% following the results while Vita Coco was down 11%.
Read our full analysis of Medifast’s results here and Vita Coco’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 6.4% on average over the last month. Herbalife is up 3.4% during the same time and is heading into earnings with an average analyst price target of $17 (compared to the current share price of $12.99).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
