Health and wellness products company Herbalife (NYSE:HLF) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
Herbalife beat analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 6.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ gross margin estimates but a significant miss of analysts’ EPS estimates.
Is Herbalife a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Herbalife’s revenue to grow 6.3% year on year, a reversal from the 3.4% decrease it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Herbalife’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Medifast’s revenues decreased 34.3% year on year, beating analysts’ expectations by 9.9%, and Estée Lauder reported revenues up 4.6%, in line with consensus estimates. Estée Lauder traded up 6% following the results.
Read our full analysis of Medifast’s results here and Estée Lauder’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Herbalife is up 10.4% during the same time and is heading into earnings with an average analyst price target of $17.50 (compared to the current share price of $15.75).
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