Herbalife Ltd. (NYSE: HLF) posted better than expected fourth quarter earnings results and announced a massive new share repurchase, although its outlook for 2017 was tepid at best.
Written by StockNews.com
The Cayman Islands-based nutritional supplement maker reported Q4 EPS of $1.00, which was $0.03 better than the Wall Street consensus estimate of $0.97.
Revenues fell 4.8% from last year to $1.04 billion, also topping analysts’ view for $1.03 billion.
Looking ahead, HLF forecast Q1 EPS ranging from $0.75 to $0.95, well below Wall Street expectations for $1.29. Q1 sales are seen falling 5% to 9%.
For the full year 2017, Herbalife expects EPS of $3.65 to $4.05, also well short of analysts’ $5.00 view. 2017 revenues are seen between $4.62 and $4.64 billion, which is ahead of Wall Street’s $4.55 billion estimate.
Additionally, HLF said its board of directors has approved a new three-year $1.5 billion share buyback program.
The company commented via press release:
Michael O. Johnson, chairman and CEO of Herbalife, stated, “2016 was a dynamic and record-breaking year. Our members continue to successfully build customer-focused businesses, which is evident in our record volume and retention metrics. In addition, our new share buyback authorization is a further testament of our commitment to enhance shareholder value.”
...Year-to-date, HLF had gained 23.39% prior to today’s report, versus a 5.78% rise in the benchmark S&P 500 index during the same period.
HLF currently has a StockNews.com POWR Rating of B (Buy), and is ranked #3 of 10 stocks in the Medical – Consumer Goods category.
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