Herbalife's Q3 results beat estimates on Asia-Pacific sales growth; lifts FY outlook
Overview
US nutrition products seller's Q3 sales rose 6%, beating analyst expectations
Adjusted EPS and adjusted EBITDA for Q3 both beat analyst expectations
Company announced new $250 mln share repurchase program over three years
Outlook
Herbalife raises full-year 2026 net sales growth guidance to +4.9% to +5.9% YoY
Company maintains full-year 2026 adjusted EBITDA guidance at $670 mln to $690 mln
Herbalife expects Q4 2026 net sales growth of 0.5% to 4.5% YoY
Result Drivers
SALES VOLUME - Co said Q3 sales growth was primarily driven by increased sales volume
REGIONAL PERFORMANCE - Asia-Pacific and Latin America led constant currency sales growth, while North America saw modest gains
INTEREST EXPENSE SAVINGS - Q3 net interest expense fell $19.1 mln year-over-year due to April refinancing, supporting earnings and cash generation, per CFO Scott Schaefer
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $1.35 bln | $1.31 bln (4 Analysts) |
Q3 Adjusted EPS | Beat | $0.64 | $0.62 (3 Analysts) |
Q3 EPS | $0.55 | ||
Q3 Net Income | $58.8 mln | ||
Q3 Adjusted EBITDA | Beat | $182.4 mln | $168.93 mln (4 Analysts) |
Q3 Adjusted EBITDA Margin | 13.5% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "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 $19.00, about 45.6% above its October 30 closing price of $13.05
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago
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(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.)