Herbalife Ltd. (HLF) : Earnings Preview

Herbalife Ltd. (HLF) is scheduled to report its earnings for the second quarter of 2015 after the markets close today. Checking in on the numbers, the consensus is expecting a profit of $1.11 per share from Herbalife, down from $1.55 in the same quarter last year. Revenue is seen declining 13% YoY to $1.14 billion from $1.31 billion.

As a quick reminder, Herbalife reported 1Q/15 EPS of $1.29, $0.28 better than the Street’s consensus estimate of $1.01. Revs came in at $1.01 billion versus the $1.09 billion consensus. Earnings Whisper number was $1.03 per share.

On valuation measures, Herbalife Ltd. shares have a T-12 price/sales of 0.96 and a current ratio of 1.22. EPS is $3.58. The name has a market cap of $4.60 billion and a median Wall Street price target of $58.50 with a high target of $90. Currently there are 3 analysts that rate HLF a ‘Buy’, 3 rate it a ‘Hold’. No analyst rates it a ‘Sell’.

In terms of share statistics, Herbalife Ltd. has a total of 92.41 million shares outstanding with 11.05% held by insiders. The stock’s short interest currently stands at 28.15%, bringing the total number of shares sold short to 23.17 million.

Offering a dividend yield of 2.39%, shares of George Town, the Cayman Islands-based nutrition company are down 5.29% year-over-year and 32.07% year-to-date.

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