NYSE$HLF

Herbalife Nutrition Ltd. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Herbalife's Q2 2024 results were announced, revealing a slight sales decrease but exceeded adjusted EBITDA guidance.

Herbalife reported a 2.5% decrease in net sales, totaling $1.3 billion, but achieved growth on a constant currency basis. The adjusted EBITDA of $180.0 million exceeded expectations, with a margin increase of 120 basis points year-over-year. The company is focused on driving shareholder value and reducing total leverage.

  • Net sales were $1.3 billion, a decrease of 2.5% compared to Q2 2023.
  • Net income reached $4.7 million, with an adjusted net income of $54.8 million.
  • Adjusted EBITDA was $180.0 million, exceeding the company's guidance.
  • Diluted EPS was $0.05, while adjusted diluted EPS was $0.54.

Headline financials

Total Revenue

$1.28B

Previous: $1.31B-2.5%
EPS (adj)

$0.54

Previous: $0.74-27.0%
Capital Expenditures

-$69.2M

Previous: -$68.6M-0.9%
Free Cash Flow

-$64.5M

Previous: -$8.7M-641.4%
Net Income

$4.7M

Previous: $59.9M-92.2%
Operating Income

$80.4M

Previous: $123M-34.8%
Gross Profit

$998M

Previous: $1.01B-1.4%
Cash & Equivalents

$374M

Previous: $527M-29.0%
Total Assets

$2.6B

Previous: $2.77B-6.1%
Stock-Based Comp

$11.8M

Previous: $11.2M+5.4%

Revenue & EPS history

Herbalife · Revenue · Quarterly

$1.28B

Q2 2024-2.5%vs Q2 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Herbalife provided guidance for the third quarter and revised full-year 2024 guidance, reducing net sales expectations but raising adjusted EBITDA guidance and reaffirming capital expenditure plans.

Tailwinds

  • Adjusted EBITDA for Q3 2024 is expected to be between $125 million and $155 million.
  • Full-year 2024 adjusted EBITDA guidance has been raised to $560 million - $600 million.
  • Capital expenditures for the full year are reaffirmed at $120 million - $150 million.
  • The company expects to realize at least $50 million in savings in 2024 from the Restructuring Program.
  • Focus on expanding margins, creating shareholder value, and reducing total leverage ratio to 3.0x by the end of 2025.

Headwinds

  • Net sales for Q3 2024 are expected to decline between (4.5)% and 0% year-over-year.
  • Full-year 2024 net sales guidance has been reduced to between (3.5)% and +1.5% year-over-year.
  • The Company expects to incur total program pre-tax expenses of approximately $70 million related to the restructuring.
  • Capitalized SaaS implementation costs are expected to be approximately $20 million to $25 million for the full year of 2024.
  • The company is exposed to risks associated with operating internationally and is subject to fluctuations in foreign currencies.

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 2024

Historical avgQ2 2024

+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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