Herbalife Ltd.

Company Description

Herbalife Ltd. is a network marketing company that sells weight management and nutritional supplements worldwide. The company was founded in 1980 and has a market cap of $2.54 billion.

Shares of HLF recently spiked higher on the company's better than expected third-quarter results after rebounding from a longer-term trend line that has been supporting prices for the last 8 months.

Third-Quarter Results

Sales were mostly flat from last year, but earnings came in better than expected at 85 cents per share, 16 cents ahead of the Zacks Consensus Estimate. Herbalife has beat in each of the last four quarters by an average of 8 cents, or 12%.

The company also noted that it reduced its debt by $106 million from last year to $94.4 million.

Estimates Advance

After the good quarter, the current-year estimate added 16 cents and moved to $3.19 per share. The next-year estimate is pegged at $3.64, a 14% growth projection.

Valuation

Based on the current-year estimate, shares of HLF are trading with a forward P/E of 14X, a discount to the overall market.

The Chart

Shares of HLF are up big over the last 8 months after bottoming out in early March just shy of $12. More recently, shares have spiked higher on the solid earnings surprise after rebounding from a long-term trend line. Take a look below.

Read the full analyst report on HLF