Herbalife (HLF) Tops Q1 EPS Views; Terminates Dividend, Will Do Buybacks Instead
Herbalife (NYSE: HLF) reported Q1 EPS of $1.50, $0.21 better than the analyst estimate of $1.29. Revenue for the quarter came in at $0 versus the consensus estimate of $1.23 billion.
Board of Directors Accelerates Cash Returns to Shareholders
The company’s board of directors also announced today that, as part of its goal to accelerate cash returns to shareholders, it has approved terminating the company’s quarterly cash dividend and instead utilizing the cash to repurchase additional shares of the company’s outstanding common stock during the second quarter of 2014.
The company now expects to repurchase a total of $581 million of its outstanding common stock during the second quarter of 2014 as part of its previously announced $1.5 billion share repurchase program. The $581 million is comprised of the approximately $315 million expected to be purchased in April as part of a 10b5-1 trading plan ($255 million already completed as of Friday, April 25); plus the $50 million included in previous guidance and $216 million that otherwise was expected to be returned to shareholders in the form of quarterly cash dividends over the next eight quarters.
Herbalife sees FY2014 EPS of $6.10-$6.30, versus the consensus of $6.05.
For earnings history and earnings-related data on Herbalife (HLF) click here.