uploads///hlf pm

How Did Herbalife Perform in 3Q16?

Gabriel Kane - Author

Nov. 3 2016, Updated 8:05 a.m. ET

Price movement

Herbalife (HLF) has a market cap of $5.5 billion. It fell 2.6% to close at $59.12 per share on November 1, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.4%, -7.4%, and 10.3%, respectively, on the same day. HLF is trading 4.4% below its 20-day moving average, 4.3% below its 50-day moving average, and 0.11% above its 200-day moving average.

Article continues below advertisement

Related ETFs and peers

The PowerShares Dynamic Market Portfolio ETF (PWC) invests 0.55% of its holdings in Herbalife. The ETF tracks a quant-selected, tier-weighted index covering the entire US equity market. The YTD price movement of PWC was 1.1% on November 1. The market caps of Herbalife’s competitors are as follows:

  • GNC Holdings (GNC) — $969.2 million
  • Nu Skin Enterprises (NUS) — $3.4 billion
  • Archer Daniels Midland (ADM) — $26.7 billion

Performance of Herbalife in 3Q16

Herbalife reported 3Q16 net sales of $1.12 billion, a rise of 1.8% over the net sales of $1.10 billion in 3Q15. Sales from the North America, EMEA (Europe, the Middle East, and Africa), and Asia-Pacific regions rose 9.9%, 10.5%, and 3.0%, respectively, and sales from Mexico, South and Central America, and China fell 0.53%, 12.4%, and 4.8%, respectively, between 3Q15 and 3Q16. The company’s gross margin rose 20 basis points, and its operating margin fell 120 basis points.

Article continues below advertisement

Its net income and EPS (earnings per share) fell to $87.7 million and $1.01, respectively, in 3Q16, compared with $93.6 million and $1.09 in 3Q15. It reported adjusted EPS of $1.21 in 3Q16, a fall of 4.0% from 3Q15. Herbalife’s cash and cash equivalents fell 11.4%, and its inventories rose 12.0% between 4Q15 and 3Q16. Its current ratio fell to 1.2x in 3Q16, compared with 1.5x in 4Q15.


Herbalife has made the following projections for fiscal 4Q16:

  • net sales growth of -2.5%–1.5%
  • adjusted EPS of $0.80–$1
  • capital expenditure of $33.0 million–$43.0 million

The company has made the following projections for fiscal 2016:

  • volume point growth of 4.5%–5.5%
  • net sales growth of 1.0%–2.0%
  • adjusted EPS of $4.65–$4.85
  • capital expenditure of $145.0 million–$155.0 million
  • effective tax rate of 28.0%–30.0%
  • currency-adjusted net sales growth of 6.3%–7.3%
  • currency-adjusted EPS of $5.61–$5.81

The company has made the following projections for fiscal 2017:

  • net sales growth of 3.5%–6.5%
  • adjusted EPS of $4.60–$5.00
  • capital expenditure of $130.0 million–$160.0 million

Next, we’ll discuss Coach (COH).


Latest PowerShares Dynamic Market ETF News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.