Herbalife (HLF) Q1 Earnings Report Preview: What To Look For

Health and wellness products company Herbalife (NYSE:HLF) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Herbalife beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $1.22 billion, up 2.9% year on year. It was a weak quarter for the company, with a miss of analysts' EPS  estimates.

Is Herbalife a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Herbalife's revenue to grow 1.1% year on year to $1.27 billion, a reversal from the 6.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herbalife has missed Wall Street's revenue estimates twice over the last two years.

Looking at Herbalife's peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Medifast's revenues decreased 49.9% year on year, meeting analysts' expectations, and Colgate-Palmolive reported revenues up 6.2%, topping estimates by 2.1%. Colgate-Palmolive traded up 1.3% following the results.

Read our full analysis of Medifast's results here and Colgate-Palmolive's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Herbalife's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $11.9 (compared to the current share price of $9.06).

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