Herbalife Ltd. (HLF) Beats the Street

Herbalife Ltd. (HLF) shares are up $0.63 to $35.45 in extended hours following the company’s fourth quarter earnings results.

The weight loss and nutrition products firm reported non-GAAP earnings of $1.41 per share on revenues of $1.13 billion, down 10.7% from a year ago. Analysts were expecting EPS of $1.22 on revenues of $1.16 billion. For the full year 2014, the company reported net sales of $5.0 billion, a 3% increase compared to 2013. Net sales, excluding currency impact, increased 8% compared to 2013.

“2014 was a record year in terms of net sales, volume and sales leader retention,” Michael Johnson, Herbalife’s chairman and CEO, said in the company’s earnings release. “It was also a year of transition, as we continue to implement changes that we believe will create a stronger company with the ideal combination of growth and sustainability.”

“We have seen the success of these changes in early adopter markets and remain confident that our other markets will follow a similar pattern through 2015 and beyond,” he added.

For Q1’15, Herbalife provided EPS guidance of $1.00-$1.10 versus consensus of $1.30 per share. The company also issued revenue projection of $1.07-$1.10 billion, compared to the consensus revenue estimate of $1.17 billion.

On valuation measures, Herbalife Ltd. shares, which currently have an average 3-month trading volume of 1.86 million shares, trade at a trailing-12 P/E of 10.17, a forward P/E of 6.85 and a P/E to growth ratio of 2.43. The median Wall Street price target on the name is $55.00 with a high target of $75.00. Currently ticker boasts 4 ‘Buy’ endorsements, compared to 3 ’Holds’ and no ‘Sell’.

Profitability-wise, HLF has a t-12 profit and operating margin of 6.46% and 10.95%, respectively. The $3.20 billion market cap company reported $645.40 million in cash vs. $1.83 billion in debt in its most recent quarter.

HLF currently prints a one year loss of about 50.50% and a year-to-date loss of around 11%.

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

Herbalife Ltd. is a nutrition company that sells weight management, healthy meals and snacks and personal care products worldwide. The company was founded in 1980 and is based in George Town, the Cayman Islands.

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