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Herbalife Nutrition Ltd.

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Herbalife has surpassed the industry in the past year, which can be attributable to the company’s solid past record that was retained in second-quarter 2018. Notably, both top and bottom lines improved year over year, and topped the Zacks Consensus Estimate for the third consecutive time. While earnings were driven by robust sales, tax gains and improved gross margin, sales were backed by strength across all regions. Further, Herbalife recorded its highest ever quarterly volume this time, which encouraged management to raise its volumes outlook, while it also pulled up its earnings view for 2018. Clearly, Herbalife’s efforts to keep pace with consumers’ preferences and its effective direct-selling strategy are paying off. However, Herbalife’s solid international presence keep it exposed to adverse currency movements. Incidentally, management cut its 2018 sales view, to account for a 330-bps negative currency impact.

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