Why Herbalife (HLF) Is Down Today

NEW YORK (TheStreet) -- Monday Herbalife (HLF) reported preliminary fourth-quarter results that beat analyst expectations, but first-quarter guidance is concerning shareholders this morning.

The supplement company said that it earned between $1.26 and $1.30 a share in the fourth quarter that ended Dec. 31. Analysts polled by Thomson Reuters expected earnings of $1.17 a share for the quarter. Revenue rose by about 19.8% according to Herbalife, which would mean revenue of about $1.27 billion for the quarter, compared to analyst estimates of $1.22 billion.

For the first quarter ending March 31, Herbalife expects earnings of between $1.24 and $1.28 a share, lower than analyst estimates of $1.40 a share. The company says the weak Venezuelan bolivar hurt earnings for the quarter.

Shares of Herbalife were falling 1.1% to $63.66.

TheStreet Ratings team rates HERBALIFE LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate HERBALIFE LTD (HLF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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