Herbalife (HLF) Tops Q4 EPS by 3c; $1.5B Buyback
Herbalife (NYSE: HLF) reported Q4 EPS of $1.00, $0.03 better than the analyst estimate of $0.97. Revenue for the quarter came in at $1 billion versus the consensus estimate of $1.05 billion.
Company announces board approval of a new 3 year $1.5 billion share buyback program.
Outlook
John DeSimone, CFO of Herbalife, stated “the company’s new $1.45 billion debt deal and $1.5 billion share repurchase authorization combined with the strength of our balance sheet, allows us to capitalize on our global market potential, and gives us the financial flexibility to further create long-term shareholder value through investments that includes share repurchase."
With respect to guidance, the company cannot accurately predict the impact to its share base from any repurchases that may be made under the new authorization during 2017 and therefore the guidance table below excludes any impact thereof to EPS. However, the cost of the new debt deal is predictable and has been included.
| Three Months Ending | Twelve Months Ending | ||||||||||||||
| March 31, 2017 | December 31, 2017 | ||||||||||||||
| Low | High | Low | High | ||||||||||||
| Volume Point Growth vs 2016 | (5 | .0%) | (1 | .0%) | 2 | .0% | 5 | .0% | |||||||
| Net Sales Growth vs 2016 | (9 | .0%) | (5 | .0%) | 0 | .3% | 3 | .3% | |||||||
| Diluted EPS (a) | $ | 0 | .50 | $ | 0 | .70 | $ | 2 | .95 | $ | 3 | .35 | |||
| Adjusted(b) Diluted EPS | $ | 0 | .75 | $ | 0 | .95 | $ | 3 | .65 | $ | 4 | .05 | |||
| Cap Ex ($ millions) | $ | 15 | .0 | $ | 25 | .0 | $ | 125 | .0 | $ | 155 | .0 | |||
| Effective Tax Rate (a) | 26 | .8% | 28 | .8% | 26 | .8% | 28 | .8% | |||||||
| Currency Adjusted Net Sales Growth vs 2016 | (7 | .2%) | (3 | .2%) | 3 | .6% | 6 | .6% | |||||||
| Currency Adjusted Diluted EPS | $ | 0 | .85 | $ | 1 | .05 | $ | 4 | .20 | $ | 4 | .60 | |||
| (a) Excludes any ongoing tax effects from the exercise of equity awards that could impact our tax rate beginning fiscal year 2017 due to a recently issued stock compensation accounting standard. | |||||||||||||||
(b) Adjusted diluted EPS, for the purposes of 2017 guidance, excludes the impact of expenses relating to challenges to the company’s business model, the impact of non-cash interest costs associated with the company’s convertible notes, FTC settlement implementation and expenses related to regulatory inquiries. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of adjusted net income to net income calculated in accordance with GAAP and a reconciliation of adjusted diluted EPS to diluted EPS calculated in accordance with GAAP and a discussion of why we believe these non-GAAP measures are useful. | |||||||||||||||
For earnings history and earnings-related data on Herbalife (HLF) click here.