NYSE$HLF

Herbalife Nutrition Ltd. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported double-digit net sales growth for the fourth straight quarter.

Herbalife Nutrition reported a strong second quarter with net sales of $1.6 billion, a 15% increase compared to Q2 2020. Adjusted EBITDA reached a record $262.1 million, and the company updated its full-year guidance for net sales and adjusted diluted EPS.

  • Net sales increased by 15% to $1.6 billion compared to Q2 2020.
  • Diluted EPS was reported as $1.31, and adjusted diluted EPS was $1.52.
  • Net income for the quarter increased by 25% to $144.2 million compared to Q2 2020.
  • Adjusted EBITDA reached $262.1 million, the largest quarterly result in company history.

Headline financials

Total Revenue

$1.55B

Previous: $1.35B+15.2%
EPS (adj)

$1.52

Previous: $0.95+60.0%
Capital Expenditures

-$68.4M

Previous: -$49.6M-37.9%
Free Cash Flow

$75.8M

Previous: $65.5M+15.7%
Net Income

$144M

Previous: $115M+25.3%
Operating Income

$238M

Previous: $190M+25.4%
Gross Profit

$1.23B

Previous: $1.07B+14.4%
Cash & Equivalents

$838M

Previous: $1.74B-51.9%
Total Assets

$2.97B

Previous: $3.57B-16.8%
Stock-Based Comp

$14.6M

Previous: $12.2M+19.7%

Revenue & EPS history

Herbalife · Revenue · Quarterly

$1.55B

Q2 2021+15.2%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

Herbalife Nutrition provided its third quarter and updated full year 2021 guidance based on current business trends.

Tailwinds

  • Full year net sales growth between 8.5% and 12.5%.
  • Full year adjusted diluted EPS between $4.70 and $5.10.
  • Full year Adjusted EBITDA between $875 million and $935 million.
  • Net sales guidance includes a projected currency tailwind of approximately 220bps.
  • Adjusted diluted EPS guidance includes a projected currency tailwind of approximately $0.15 per diluted share.

Headwinds

  • Third quarter volume point growth decline between (4.5%) and 1.5%.
  • Third quarter net sales growth decline between (1.0%) and 5.0%.
  • Third quarter adjusted diluted EPS between $1.05 and $1.25.
  • Third quarter adjusted EBITDA between $205.0 and $235.0 millions.
  • Third quarter net sales guidance includes a projected currency tailwind of approximately 200bps.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.4%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-1.5%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+42.7%

Q4 2024

Best reaction

-31.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.2%-17.2%-30.7%
Q4 2025+18.3%+18.5%-11.1%
Q3 2025+10.7%+10.0%+48.1%
Q1 2025-7.9%-4.7%+8.5%
Q4 2024+42.7%+47.5%+50.0%
Q3 2024+8.5%+18.2%+11.6%
Q2 2024-9.4%-22.8%-34.1%
Q1 2024+8.4%+12.4%+19.1%
Q4 2023-31.9%-31.6%-24.1%
Q3 2023-2.5%-3.3%-7.7%
Q2 2023+14.8%+13.3%-5.7%
Q1 2023-8.6%-6.4%-20.8%
Q4 2022+27.1%+22.0%+7.3%
Q3 2022-2.8%-24.5%-18.5%
Q2 2022+12.0%+13.2%+7.2%
Q1 2022-3.4%-8.7%-16.3%
Q4 2021-16.7%-14.5%-25.8%
Q3 2021-3.7%-5.3%-17.6%
Q2 2021-5.7%-5.2%+2.9%
Q1 2021+3.2%+9.1%+18.0%
Q4 2020-10.5%-18.6%-17.7%
Q3 2020+2.1%-6.0%+5.1%
Q2 2020-3.4%-5.2%-4.6%
Q1 2020+22.0%+16.4%+35.3%
Q4 2019-2.8%-5.6%-26.3%
Q3 2019+10.6%+9.4%+13.0%
Q2 2019-7.4%-6.6%-16.1%
Q1 2019-5.9%-6.7%-22.2%
Q4 2018-0.9%-0.6%-1.0%
Q3 2018-1.9%-1.5%+4.8%
Q2 2018+11.8%+15.0%+9.6%
Q1 2018+5.1%+4.6%-3.9%
Q4 2017+3.2%+4.5%+18.0%
Q3 2017-3.4%-6.5%-1.7%
Q2 2017-1.9%-0.9%+3.8%
Q1 2017+11.2%+16.6%+18.4%
Q4 2016-6.6%-7.0%-6.1%
Q3 2016-8.6%-9.4%-20.5%
Q2 2016+1.1%+0.4%-8.1%
Q1 2016+9.9%
Q4 2015+19.3%
Q3 2015-1.7%
Q2 2015+14.4%
Q1 2015+11.0%
Q4 2014-7.9%
Q3 2014-15.6%
Q2 2014-11.7%
Q1 2014+4.0%
Q4 2013-0.3%
Q3 2013+2.4%
Q2 2013+2.7%
Q1 2013+3.8%
Q4 2012-2.5%
Q3 2012+1.5%
Q2 2012+2.0%
Q1 2012-15.3%
Q4 2011+10.2%
Q3 2011-5.4%
Q2 2011+5.3%
Q1 2010+13.9%
Q1 2011-0.7%
Q4 2008+10.6%
Q4 2010+10.6%
Q3 2009-1.7%
Q3 2010-1.7%
Q2 2009+10.7%
Q2 2010+10.7%
Q4 2009+10.7%

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