Herbalife (HLF) Stock Stumbles, Sales Fall Short of Estimates

Herbalife (HLF) shares are diving on Wednesday after the company posted its third quarter fiscal 2015 earnings results that missed revenue forecasts but beat profit expectations.
By U-Jin Lee ,

NEW YORK (TheStreet) -- Herbalife (HLF) - Get Report  shares are diving 5.08% to $54.91 on Wednesday after the company posted its third quarter fiscal 2015 earnings results that missed analysts' revenue forecasts but beat profit expectations. 

For the latest quarter, the company earned $1.28 a share on revenue of $1.1 billion.

Analysts surveyed by Thomson Reutershad expected the company to earn $1.05 a share on revenue of $1.15 billion. 

In the same period the year before, the company earned $1.45 a share on revenue of $1.26 billion.

Overall, the strong dollar negatively impacted the company's sales. However, the company saw a 24% year-over-year sales growth in China despite seeing a drop in North America, Asia Pacific and Mexico. 

Looking ahead, the company forecasts full-year earnings to be between the range of $4.65 to $4.57 a share, above its previous guidance of $4.50 to $4.70 a share. 

Based in Cayman Islands, Herbalife is a nutrition company that develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products.

Separately, TheStreet Ratings team rates HERBALIFE LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate HERBALIFE LTD (HLF) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share.

You can view the full analysis from the report here: HLF

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