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
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$0.59
$0.38 (2 Analysts)
Q2 EPS
$0.48
Q2 Net Income
$49.30 mln
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
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)