Herbalife released its second quarter earnings report after closing bell tonight, posting adjusted earnings of $1.24 per share on revenue of $1.16 billion. Analysts had been looking for earnings of $1.11 per share and $1.15 billion in revenue. In last year’s second quarter, the multi-level marketing company reported earnings of $1.55 per share and $1.31 billion in revenue.
Herbalife (HLF) exceeds guidance
Management had guided for adjusted earnings of between $1.05 and $1.15 per share. Reported earnings were 97 cents per share. The 11% year over year decline in worldwide net sales was the result of currency exchange rates. Excluding currency impacts, net sales increased 1% year over year.
Herbalife reported an 8% decline in net sales in North America, marking sales of $230 million for the region. Sales in the Asia Pacific region fell 22% to $239.1 million, while China sales increased 39% to $236.7 million. In South and Central America, sales fell 39%, while in Europe, the Middle East, and Africa, sales fell 15% to $193.8 million. In all regions except for North America and Asia Pacific, constant currency sales increased or remained flat. Excluding foreign exchange, North America net sales fell 8%, while Asia Pacific sales fell 17%.
The number of active sales leaders was flat year over year in North America, the Asia Pacific region, and Mexico. In Europe, the Middle East, and Africa, the number of active sales leaders increased in 26%, while in China the number climbed 28%.
Herbalife (HLF) raises guidance
Herbalife management also increased their guidance for the full fiscal year. They’re now expecting adjusted earnings of between $4.50 and $4.70 per share. Their previous guidance was for adjusted earnings of between $4.30 and $4.60 per share. For the September quarter, they project adjusted earnings of between $1 and $1.10 per share, compared to the consensus estimate of $1.01 per share.
They expect net sales to decline by between 10% and 7% for the September quarter and between 9.5% and 6.5% for the full fiscal year. Herbalife expects volume points to decline by between 4% and 1% for both the September quarter and the full year.
As of this writing, shares of Herbalife were up 8.14% at $53 per share.
