Notable Earnings: Herbalife (HLF), SolarCity (SCTY), Groupon (GRPN), zulily, Inc. (ZU)

Herbalife Ltd. (HLF) shares are up $6.16, or 15.64%, to $46.25 in after-hours trading Tuesday after the company reported its first quarter earnings results.

The health supplement firm, which has fought allegations from hedge fund manager Bill Ackman it operates an illegal pyramid scheme, reported earnings of $1.29 per share on revenues of $1.11 billion, down 12.5% from $1.26 billion a year ago. Analysts were expecting EPS of $1.01 on revenues of $1.09 billion. Net income for the quarter that ended March 31, 2015 came in at $78.2 million, or $0.92 per diluted share, from $74.6 million, or $0.74 per diluted share, a year earlier. Currency movements shaved 30 cents off after-tax earnings, including the impact of the devaluation of the Venezuela bolivar, said the company.

Michael Johnson, chairman and CEO stated, “Our performance this quarter was above our expectations and has resulted in us increasing our full year 2015 guidance.”

For Q2/15, Herbalife provided EPS guidance of $1.05 – $1.15 versus consensus of $1.06 per share. The company also issued revenue projection of $1.13 – $1.17 billion, compared to the consensus revenue estimate of $1.14 billion. Herbalife said it expects full-year earnings in the range of $4.30 – $4.60 per share.

Johnson continued, “As reflected in our record sales leader retention results, we remain confident that we are building a stable foundation for volume and sales growth, driving long-term shareholder value creation, and providing an even better experience for our millions of Members and our customers throughout the world.”

Profitability-wise, HLF has a t-12 profit and operating margin of 6.23% and 10.85%, respectively. The $3.69 billion market cap company reported $715.5 million in cash vs. $1.3 billion in long-term debt, net of current portion in its most recent quarter.

HLF currently prints a one year loss of about 30% and a year-to-date return of around 12%.

The chart below shows where the equity has traded over the last 52 weeks.

SolarCity Corporation (SCTY) reported first quarter EPS of ($1.52) after the closing bell Tuesday, compared to the consensus estimate of ($1.60). Revenues increased 6.3% from last year to $67.5 million. Analysts expected revenues of $57.73 million. Sales and marketing expenses grew 85% year-over-year to $86.7 million, largely due to a 90% increase in the company’s sales force over the last twelve months, SolarCity said.

For Q2/15, SCTY provided EPS guidance of ($1.70)-($1.60) versus consensus of ($1.49) per share. The company also issued revenue projection of $86-92 million, compared to the consensus revenue estimate of $96.76 million.

Shares fell 2.3% in after hours to $57.90, after touching a 17-month high of 61.97 on April 27.

Shares of Groupon, Inc. (GRPN) are down $0.14 to $6.70 after the company released its earnings results on Tuesday. The firm reported Q1’15 EPS of $0.03 per share vs. $0.02 consensus on $750.4 million in revenue, up 3.0% from a year ago. Net loss in the period came in at $14.27 million, or ($0.02) per share, from a loss of $37.8 million , or ($0.06) per share, a year earlier.

“Q1 was a strong quarter, despite significant headwinds from foreign exchange rates, as we delivered 58% year-over-year growth in Adjusted EBITDA,” said in a statement Eric Lefkofsky, CEO of Groupon. “Our North America business saw its third-straight quarter of double digit billings increases in all three categories, and we made continued progress in our mission to connect local commerce through our predominantly mobile marketplace.”

For Q2/15, GRPN provided EPS guidance of $0.01 – $0.03 versus consensus of $0.03 per share. The company also issued revenue projection of $700 – $750 million, compared to the consensus revenue estimate of $762.87 million.

On valuation measures, Groupon Inc. shares, which currently have an average 3-month trading volume of 10 million shares, trade at a forward P/E of 29.74 and a P/E to growth ratio of 1.71. The median Wall Street price target on the name is $8.88 with a high target of $12.00. Currently ticker boasts 10 ‘Buy’ endorsements, compared to 13 ‘Holds’ and no ‘Sell’.

Profitability-wise, GRPN has a t-12 profit and operating margin of (2.29%) and (0.43%), respectively. The $4.62 billion market cap company reported $975 million in cash in its most recent quarter.

GRPN currently prints a one year loss of 0.73% and a year-to-date loss of around 18%.

zulily, Inc. (ZU) dropped $2.21, or 19.50%, to $9.61 in after-hours trading after it reported fiscal results for the first quarter.

In its quarterly report, the online retailer said it earned non-GAAP earnings of $0.01 per share, well above the ($0.04) per share analysts were expecting. Revenue rose 28.9% to $306.62 million from $237.8 million yoy, but below views for $313.47 million. Gross profit increased to $92.2 million, up 45% year over year while gross margin increased yoy to 30.1%. Q1 non-GAAP adjusted EBITDA was up $4.4 million.

“We delivered strong first quarter results with revenue in line and adjusted EBITDA well exceeding our expectations. We made significant progress against our 2015 objectives to improve the daily experience, deliver the perfect order and expand gross margins,” stated Darrell Cavens, CEO of zulily.

For Q2/15, ZU provided EPS revenue guidance of $285 – $300 million, compared to the consensus revenue estimate of $361.67 million.

At the end of the first quarter 2015, zulily’s cash, cash equivalents, and short-term investments totaled $314.8 million.

ZU currently prints a one year loss of about 75.60% and a year-to-date loss of around 50%.

The chart below shows where the equity has traded over the last 52 weeks.

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