The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Herbalife beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share increased significantly.
Margins contracted across the board.
Herbalife tallied revenue of $1.06 billion. The six analysts polled by S&P Capital IQ wanted to see revenue of $1.05 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $884.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.05. The eight earnings estimates compiled by S&P Capital IQ forecast $1.01 per share. GAAP EPS of $1.05 for Q4 were 24% higher than the prior-year quarter's $0.85 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 46.5%, 100 basis points worse than the prior-year quarter. Operating margin was 15.1%, 10 basis points worse than the prior-year quarter. Net margin was 11.1%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $4.64.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 437 members out of 655 rating the stock outperform, and 218 members rating it underperform. Among 196 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 109 give Herbalife a green thumbs-up, and 87 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Herbalife is outperform, with an average price target of $75.43.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has the following options: Long Jan 2014 $50 Calls on Herbalife Ltd. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.