NYSE$HLF

Herbalife Nutrition Ltd. · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Herbalife Nutrition reported a decrease in net sales but exceeded adjusted EPS and EBITDA guidance.

Herbalife Nutrition reported Q3 2021 financial results with net sales of $1.4 billion, a 6% decrease compared to Q3 2020, but in line with guidance. Diluted EPS was $1.09, and adjusted diluted EPS was $1.21. The company exceeded the high-end of its guidance range for adjusted diluted EPS and adjusted EBITDA and is reiterating its FY 2021 outlook.

  • Net sales were $1.4 billion, a 6% decrease compared to the prior year, but in-line with guidance.
  • Reported diluted EPS was $1.09, and adjusted diluted EPS was $1.21, both increasing by approximately 5% compared to the prior year.
  • The company exceeded the high-end of its guidance range for adjusted diluted EPS and adjusted EBITDA.
  • Asia Pacific led with double-digit net sales growth, up 11% compared to the prior year.

Headline financials

Total Revenue

$1.43B

Previous: $1.52B-6.0%
EPS (adj)

$1.21

Previous: $1.15+5.2%
Capital Expenditures

-$105M

Previous: -$75.6M-38.2%
Free Cash Flow

$12.9M

Previous: $62.5M-79.4%
Net Income

$117M

Previous: $138M-15.0%
Operating Income

$189M

Previous: $207M-8.5%
Gross Profit

$1.13B

Previous: $1.2B-6.1%
Cash & Equivalents

$678M

Previous: $1.03B-34.4%
Total Assets

$2.85B

Previous: $2.92B-2.3%
Stock-Based Comp

$14.4M

Previous: $15.4M-6.5%

Revenue & EPS history

Herbalife · Revenue · Quarterly

$1.43B

Q3 2021-6%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The Company is reiterating its outlook for the full year 2021, including net sales growth of 4.5% - 8.5% and adjusted diluted EPS of $4.55 - $4.95.

Tailwinds

  • Net sales growth between 4.5% and 8.5%
  • Adjusted diluted EPS between $4.55 and $4.95
  • Adjusted EBITDA between $860 million and $910 million
  • Net sales guidance includes a projected currency tailwind of approximately 200bps
  • Adjusted diluted EPS guidance includes a projected currency tailwind of approximately $0.11 per diluted share

Headwinds

  • Excludes any future potential Venezuela currency devaluations and associated pricing and inflationary consequences.
  • Excludes any future potential ongoing tax effects from the exercise or vesting of equity awards that could impact the Company's tax rate due to the stock compensation accounting standard.
  • Excludes benefits from future potential China grant income.
  • Excludes any future potential dilution from the Company’s convertible notes due in 2024, as well as any future impact of the China Growth and Impact Investment Program.
  • Adjusted diluted EPS and adjusted EBITDA guidance are non-GAAP measures and exclude potential charges or gains that may be recorded during the applicable period.

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 Q3 2021

Historical avgQ3 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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