Herbalife Ltd. Second Quarter Earnings Sneak Peek

The Cheat Sheet

Herbalife Ltd. will unveil its latest earnings on Monday, August 1, 2011. Herbalife, Ltd is the marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products.

Herbalife Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 74 cents per share, a rise of 12.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 72 cents. Between one and three months ago, the average estimate moved up, but has dropped from 75 cents during the last month. For the year, analysts are projecting profit of $2.91 per share, a rise of 22.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 10 cents, reporting net income of 71 cents per share against a mean estimate of profit of 61 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $829.9 million in revenue this quarter, a rise of 20.5% from the year ago quarter. Analysts are forecasting total revenue of $3.28 billion for the year, a rise of 20.1% from last year’s revenue of $2.73 billion.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, none rating it as a sell and none rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 20.2%, with the biggest boost coming in the most recent quarter when revenue rose 28.5% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 68.8% while it rose 45.5% in the fourth quarter of the last fiscal year and 30.8% in the third quarter of the last fiscal year.

Competitors to Watch: Nu Skin Enterprises, Inc. , USANA Health Sciences, Inc. , Avon Products, Inc. , Nature’s Sunshine Prod. , The Estee Lauder Companies Inc. , Alberto-Culver Company , Mannatech, Inc. , Walgreens , CVS , Wal-Mart , Target and Reliv International, Inc .

Stock Price Performance: During April 29, 2011 to July 26, 2011, the stock price had risen $14.41 (32.2%) from $44.80 to $59.21. The stock price saw one of its best stretches over the last year between February 15, 2011 and February 28, 2011 when shares rose for nine-straight days, rising 17.1% (+$5.69) over that span. It saw one of its worst periods between March 11, 2011 and March 18, 2011 when shares fell for six-straight days, falling 3.3% (-$1.31) over that span. Shares are up $25.20 (+74.1%) year to date.

(Source: Xignite Financials)

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