Nutritional products maker Herbalife's beats Q2 adjusted EPS estimates, raises full-year guidance

Overview

• Herbalife Q2 net sales of $1.3 bln down 1.7% yr/yr, flat in constant currency

• Adjusted EBITDA of $173.6 mln exceeds company guidance, adjusted EPS beats market estimates

• Co raises full-year net sales and adjusted EBITDA guidance

Outlook

• Herbalife raises full-year 2025 net sales growth guidance to (1.0)% to +3.0% YoY

• Company increases full-year 2025 adjusted EBITDA guidance to $640 mln - $660 mln

• Herbalife reduces full-year 2025 capital expenditures guidance to $75 mln - $95 mln

• Company sees Q3 2025 net sales growth of +0.5% to +4.5% YoY

Result Drivers

• PRODUCT LAUNCHES - Launch of MultiBurn supplement and beta version of Pro2col app seen as pivotal steps in innovation, per CEO Stephan Gratziani

• CURRENCY HEADWINDS - Net sales impacted by 170 basis points of FX headwinds, flat year-over-year on constant currency basis

• DISTRIBUTOR ENGAGEMENT - Distributor growth initiatives supported engagement but new distributor growth was flat year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Herbalife Ltd is $9.00, about 5.1% below its August 5 closing price of $9.46

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 3 three months ago

Press Release: ID:nBw7BXRjwa