Herbalife (HLF) Misses Q3 EPS by 6c; Guides Q4 EPS In-Line with Views
Herbalife (NYSE: HLF) reported Q3 EPS of $1.45, $0.06 worse than the analyst estimate of $1.51. Revenue for the quarter came in at $1.26 billion versus the consensus estimate of $1.32 billion.
Michael Johnson, chairman and CEO stated, “In the quarter we saw volume increases in two-thirds of our 91 countries, especially Russia and China. Excluding the impact of currency translation in Venezuela, the company had solid increases in both volume and net sales. We continue to implement initiatives that we believe will further strengthen our foundation and drive long-term improvements in activity, productivity and retention of our Sales Leaders. We are proud of our members’ ability to grow the business in the short term while embracing changes that we believe will enhance the long-term opportunity.”
Mr. Johnson continued, “The changes we are applying globally, such as first order limits, have been tested in key markets and proven to drive positive results in terms of long term sustainable growth. China, Russia and parts of Europe are all great examples of markets that are stronger now than they were before we implemented such changes.
“While these initiatives may continue to moderate near-term volumes and sales growth, we know from our experience in those markets that have already adopted them, that they enhance the experience of our members and their customers, and position us for even greater future success. Our industry-leading Gold Standard consumer protections, changes designed to encourage our newest members to grow their businesses prudently, and a focus on growing a customer base of life-long customers all help our members become more productive and successful leaders. We know that these initiatives work, and coupled with the strength of our business model, the efficacy of our products and the power of our brand, will lead the company into its next phase of growth.”
Herbalife sees Q$14 EPS of $1.61 - $1.71, versus the consensus of $1.69. Sees net sales growth (8%) - (5%).
Herbalife now sees FY2014 EPS of $5.80 - $5.90, from $6.17 - $6.32 and the consensus of $6.26. Revenue growth at 3.5% - 4.3%.
FY15 EPS is expected to be $6.10 - $6.40, while estimates are at $7.22.
For earnings history and earnings-related data on Herbalife (HLF) click here.