Health and wellness products company Herbalife (NYSE: HLF) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
Herbalife beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.21 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Herbalife a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Herbalife’s revenue to decline 2.8% year on year to $1.23 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herbalife has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Herbalife’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. USANA delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 2.7%, and Medifast reported a revenue decline of 33.8%, falling short of estimates by 0.6%. USANA traded up 5.2% following the results.
Read our full analysis of USANA’s results here and Medifast’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the consumer staples stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Herbalife is down 20% during the same time and is heading into earnings with an average analyst price target of $9.33 (compared to the current share price of $6.90).
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