Health and wellness products company Herbalife (NYSE:HLF) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Herbalife missed analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $1.28 billion, down 2.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue growth estimates.
Is Herbalife a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Herbalife’s revenue to decline 2.2% year on year to $1.25 billion, a further deceleration from the 1.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herbalife has missed Wall Street’s revenue estimates three 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. USANA’s revenues decreased 6.2% year on year, missing analysts’ expectations by 2.7%, and Coca-Cola reported flat revenue, topping estimates by 2.9%. USANA traded up 6% following the results while Coca-Cola was down 3.1%.
Read our full analysis of USANA’s results here and Coca-Cola’s results here.
Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Herbalife is down 3.5% during the same time and is heading into earnings with an average analyst price target of $12.40 (compared to the current share price of $6.94).
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