Controversial multi-level marketing health company Herbalife reported its third quarter earnings on Monday afternoon. Earnings per share came in at $1.45.
Analysts polled by Factset expected earnings per share to come in at $1.51, up from $1.41 at the same time last year.
So that’s a miss, and now the Perhaps the worst part of the earnings release was that the company’s guidance also fell remarkably short of The Street’s expectations. Analysts expected 2015 guidance to indicate 7% revenue growth, but the company announced that it saw -1%-2% revenue growth.
About Herbalife Ltd.
Herbalife Ltd. (HLF) is a global nutrition company that sells weight-management, nutrition, and personal care products intended to support a healthy lifestyle. Herbalife products are sold in more than 90 countries through and to a network of independent members. The company supports the Herbalife Family Foundation and its Casa Herbalife program to help bring good nutrition to children. Herbalife’s website contains a significant amount of information about Herbalife, including financial and other information for investors at http://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted.
RESULTS OF OPERATIONS:
Herbalife Ltd. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
9/30/2014
9/30/2013
9/30/2014
9/30/2013
North America $ 223,474 $ 228,660 $ 721,935 $ 697,697
Mexico 143,927 141,243 435,248 419,770
South and Central America 205,211 241,235 653,186 683,112
EMEA 204,428 181,738 642,933 537,609
Asia Pacific 297,896 284,017 884,583 895,003
China 181,228 136,650 487,128 323,238
Worldwide net sales 1,256,164 1,213,543 3,825,013 3,556,429
Cost of Sales (1) 254,941 238,415 763,327 711,616
Gross Profit 1,001,223 975,128 3,061,686 2,844,813
Royalty Overrides 363,859 373,241 1,136,452 1,116,821
Selling, General and Administrative Expenses (2) 609,722 409,747 1,573,701 1,174,574
Operating Income 27,642 192,140 351,533 553,418
Interest Expense, net 19,864 4,726 56,231 15,658
Other Expense, net (3) 9,831 – 12,992 –
(Loss) Income before income taxes (2,053 ) 187,414 282,310 537,760
Income Taxes (13,301 ) 45,464 76,902 133,775
Net Income 11,248 141,950 205,408 403,985
Basic Shares 81,927 102,200 87,754 103,096
Diluted Shares 86,201 107,777 92,619 107,759
Basic EPS $ 0.14 $ 1.39 $ 2.34 $ 3.92
Diluted EPS $ 0.13 $ 1.32 $ 2.22 $ 3.75
Dividends declared per share $ – $ 0.30 $ 0.30 $ 0.90
Source:: Business Insider