Herbalife Ltd. reported net income above Wall Street’s expectations for the fourth quarter. Herbalife is a marketing company that sells weight management, nutritional supplement, energy, sports and fitness products and personal care products.
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Herbalife Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the drug company rose to $105.4 million (86 cents per share) vs. $86.3 million (69 cents per share) in the same quarter a year earlier. This marks a rise of 22.1% from the year-earlier quarter.
Revenue: Rose 19.8% to $884.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Herbalife Ltd. beat the mean analyst estimate of 73 cents per share. It beat the average revenue estimate of $856.6 million.
Quoting Management: “The momentum in our business continued throughout 2011 as we set new records in net sales, earnings per share, and free cash flow,” said Michael O. Johnson, the company’s chairman and CEO. “Equally important, we continue to set records in many Distributor metrics that are the foundation for continued growth, including activity levels and retention rates of Sales Leaders.”
Key Stats:
For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 24.6%, with the biggest boost coming in the third quarter when revenue rose 30% from the year earlier quarter.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 11 cents in the third quarter, by 13 cents in the second quarter, and by 10 cents in the first quarter.
Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 78 cents. The average estimate hasn’t changed from $3.18 per share for the fiscal year.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com
To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com
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