HLF Earnings Prediction
The chart below shows how HLF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HLF sees a -0.56% change in stock price 10 days leading up to the earnings, and a +2.08% change 10 days following the report. On the earnings day itself, the stock moves by -1.33%. This data can give you a slight idea of what to expect for the next quarter's release.
HLF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.21B
-0.63%
-2.65%
Gross Margin
77.84%
1.98%
-0.64%
Operating Margin
9.22%
64.64%
-9.07%
Net Margin
14.73%
1653.57%
285.60%
EPS
1.74
1640.00%
270.21%
No Data Available
HLF Earnings Analysis
Herbalife Ltd Corporation (HLF.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Herbalife Nutrition Ltd. reported an EPS of $0.36, significantly beating expectations of $0.1, indicating strong financial performance.
Net Sales Performance: The company achieved net sales of $1.2 billion in Q4, with a constant currency growth of 2.7% year-over-year, showcasing resilience despite currency fluctuations.
Q4 Adjusted EBITDA Performance: Adjusted EBITDA for Q4 was $150 million, exceeding guidance and reflecting a strong adjusted EBITDA margin of 12.4%, up 340 basis points from the previous year.
Debt Reduction and Leverage Improvement: Herbalife paid down $250 million in debt during 2024, reducing its total leverage ratio from 3.9 times to 3.2 times, demonstrating improved financial health.
New CEO Appointment: The appointment of Stephan Gratziani as the new CEO, effective May 1, is expected to bring fresh leadership and vision to the company, enhancing its growth trajectory.
Distributor Growth Trend: New distributor growth was up 22% year-over-year in Q4, marking the third consecutive quarter of growth, indicating a positive trend in distributor engagement.
Sales Leader Retention Increase: The company reported a significant increase in sales leader retention rate from 68.3% to 70.3%, reflecting improved distributor satisfaction and stability.
Global Market Advantage: Herbalife's global presence in over 90 markets and its strong community of independent distributors provide a competitive advantage in the health and wellness sector.
Negative
Sales Performance Decline: Net sales for Q4 were $1.2 billion, slightly below the fourth quarter of 2023, indicating a decline in sales performance year-over-year.
Sales Decline Analysis: Full year 2024 net sales were $5 billion, down 1.4% year-over-year on a reported basis, suggesting a challenging sales environment.
EBITDA Concerns and Sustainability: Despite a reported adjusted EBITDA of $150 million, the increase was primarily due to cost-saving initiatives rather than organic growth, raising concerns about sustainability.
Decline in Operating Cash Flows: Operating cash flows for Q4 were $70 million, down approximately $27 million from the previous year, reflecting elevated interest payments and a lack of significant cash inflow.
Sales Decline in Key Market: China's net sales decreased 20% year-over-year, highlighting significant challenges in one of the company's key markets.
North America Sales Decline: In North America, net sales were down 3% year-over-year, with lower volumes offsetting any pricing benefits, indicating ongoing struggles in this region.
FX Headwind Impact: The company expects FX to be a significant headwind for 2025, with an estimated $200 million negative impact on net sales, which could hinder growth prospects.
Sales Performance Outlook: The guidance for Q1 2025 indicates potential net sales decline of 1.5% to 5.5% year-over-year, suggesting continued uncertainty in sales performance.
HLF FAQs
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HLF Earning Call Sentiment
Herbalife Nutrition Ltd. (NYSE:HLF) Q4 2024 Earnings Call Transcript
HLF.N
0.48%Positive
The earnings report presents a mixed picture. While there is progress in debt reduction and distributor growth, challenges such as competitive pressures, supply chain issues, and a weak North American market persist. The financial performance shows a slight decline in net sales, but EBITDA and margins improved. The Q&A reveals management's cautious optimism but also highlights uncertainties, particularly in China and North America. Overall, the positive aspects are balanced by ongoing risks and uncertainties, leading to a neutral sentiment.
