Health and wellness products company Herbalife (NYSE: HLF) will be announcing earnings results this Wednesday after the bell. Here’s what to expect.
Herbalife missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $1.22 billion, down 3.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ gross margin 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 be flat year on year at $1.27 billion, improving from the 2.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 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 four times over the last two years.
Looking at Herbalife’s peers in the personal care segment, some have already reported their Q2 results, giving us a hint as to what we can expect. USANA delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 4.7%, and Nature's Sunshine reported revenues up 3.8%, topping estimates by 2.2%. USANA traded up 12.4% following the results while Nature's Sunshine was also up 13.7%.
Read our full analysis of USANA’s results here and Nature's Sunshine’s results here.
Investors in the personal care segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. Herbalife’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $9 (compared to the current share price of $9.65).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
