HERBALIFE BEATS EARNINGS AND REVENUE ESTIMATES, BOOSTS FORECAST
Adjusted earnings per share came in at $1.27, better than the $1.06 expected by analysts.
Revenues came in at $1.12 billion, in line with company guidance but slightly above analysts' estimates for $1.11 billion in sales.
The company also raised full-year 2013 earnings guidance to a range of $4.60-4.80 per share. Analysts were expecting $4.66.
Shares are up slightly in after-hours trading.
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Below is the text from the release:
LOS ANGELES--(BUSINESS WIRE)--
Herbalife Ltd. (HLF) today reported first quarter net sales of $1.1 billion, reflecting an increase of 17 percent compared to the same time period in 2012 on volume point growth of 13 percent. Adjusted1 net income for the quarter of $137.4 million, or $1.27 per diluted share, compares to 2012 first quarter net income of $108.2 million and EPS of $0.88, respectively. On a reported basis, first quarter 2013 EPS of $1.10 increased 25 percent compared to the $0.88 reported in the comparable quarter last year.
“We continue to deliver record results in sales and profitability as our independent distributors successfully execute numerous growth strategies that enable deeper market penetration, developing customers using our weight management and targeted nutrition products every day,” said Michael O. Johnson, Herbalife’s chairman and CEO. “Obesity and poor nutrition are global public health problems. Our distributors are proud to be part of the solution.”
For the quarter ended March 31, 2013 the company generated cash flow from operations of $137.6 million, an increase of 14 percent compared to 2012; paid dividends of $30.9 million; invested $24.9 million in capital expenditures; and repurchased $162.4 million in common shares outstanding under our share repurchase program.
Herbalife is arguably one of the most embattled stocks in America as multiple hedge fund titans square off over its future.
On one side is Bill Ackman, who released a massive, 342-slide presentation in December arguing that the company was a Ponzi scheme and that shares would go to $0. Ackman describes his hedge fund's short position in Herbalife as "enormous."
On the other side are activist investor Carl Icahn and hedge fund manager Dan Loeb, who both decided to invest in the stock after Ackman went public with his short call.