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Herbalife Ltd. (NYSE:HLF) Good Results But Disappointing Guidance

Boston, MA 02/03/2014 (wallstreetpr) – Herbalife Ltd. (NYSE:HLF) gave us a preliminary look into its full fiscal 2013 as well as fourth quarter financial results.

The Results:

Herbalife Ltd. (NYSE:HLF) will be declaring the final results both for the full fiscal 2013 as well as the fourth quarter ending 2013 on February 18, 2014. The preliminary results point to a good growth rate in volume terms. Herbalife expects to report volume growth of around 13% for the full fiscal 2013 as well as for the fourth quarter. Specifically, the company expects to report growth of 13.1% for the full year and 12.7 for the last quarter as compared to the same period last year. Net sales are expected to grow by 18.5% for the full year 2013 as compared to 2012. The fourth quarter saw an increase of 19.8% over the same period last year. The 4Q2013 EPS is expected in the range of $1.13 to $1.17 as compared to EPS of $1.00 reported for 4Q2012. Even the full fiscal 2013 will see as reported diluted EPS in the range of $4.89 to $4.93 against $3.94 reported for the full fiscal 2012.

Nu Skin Weighing On the Minds?

Herbalife has presence in more than 90 countries and sells its products through a network of distributors. The recent steps taken in China against Nu Skin Enterprises Inc (NYSE:NUS) seem to have played on the sentiments. Nu Skin has been embroiled in a pyramid selling scheme in China and is being investigated by the authorities there. The sentiment for the next year was more subdued. The company expects to grow by 6.5% to 8.5% in volumes terms next year. The adjusted EPS for 2014 is expected to be in the range of $5.45 to $5.65. The company expects that adverse foreign currency rates will affect its EPS by $0.10 for the full year. The company also plans to buyback shares worth $1.5 billion. Against the last repurchase of $1 billion planned, the company has a balance of $653 million.

Herbalife Ltd. (NYSE:HLF) also saw another activist investor increasing his stake in the company. William Stiritz, the CEO of Post Holdings Inc (NYSE:POST) has increased his stake to 7.39% from 6.38% and plans to engage constructively with the company to increase its shareholder worth.

Published by Donna Fago

I believe in writing content Informing investors with the knowledge they need to invest better today- I have been following the markets for many years and was asked to join the team at recently due to my passion for the markets.

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