The Street reiterates its BUY recommendation on HLF
Highlights from the ratings report include:
◾ HLF's revenue growth has slightly outpaced the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 19.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
◾ HERBALIFE LTD has improved earnings per share by 22.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HERBALIFE LTD increased its bottom line by earning $4.07 versus $3.32 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $4.07).
◾ The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Personal Products industry and the overall market, HERBALIFE LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
◾ Net operating cash flow has increased to $167.89 million or 45.10% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 23.44%.
◾ The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Personal Products industry average. The net income increased by 11.9% when compared to the same quarter one year prior, going from $105.36 million to $117.88 million.