Herbalife (NYSE:HLF) Shares Gap Up on Better-Than-Expected Earnings

Shares of Herbalife Ltd (NYSE:HLF) gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $13.28, but opened at $14.21. Herbalife shares last traded at $14.6290, with a volume of 308,554 shares changing hands.

The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.02. Herbalife had a net margin of 3.16% and a negative return on equity of 43.90%. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the previous year, the firm earned $0.50 EPS. The company’s revenue was up 3.9% compared to the same quarter last year.

Herbalife announced that its Board of Directors has approved a stock buyback program on Tuesday, September 8th that authorizes the company to buy back $250 million in shares. This buyback authorization authorizes the company to repurchase up to 19.3% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Key Stories Impacting Herbalife

Here are the key news stories impacting Herbalife this week:

• Positive Sentiment: Third-quarter net sales rose 6.0% year over year to approximately $1.35 billion, exceeding analysts’ expectations of $1.31 billion. The company also reported strong profitability and operating cash flow, marking a fifth consecutive quarter of expansion. Herbalife third-quarter results
• Positive Sentiment: Herbalife raised fiscal 2026 revenue guidance to $5.3 billion, above the $5.2 billion consensus estimate. The updated fourth-quarter revenue outlook of $1.3 billion is broadly in line with expectations, suggesting sales momentum is holding up. Herbalife earnings and guidance
• Neutral Sentiment: Third-quarter adjusted earnings were $0.64 per share, ahead of the widely cited $0.62 consensus estimate and up from $0.50 a year earlier. However, Zacks reported that results fell short of its $0.73 estimate, creating a mixed earnings reaction. Herbalife earnings estimate report
• Negative Sentiment: Interim CEO John DeSimone is leading the company following leadership changes. Investors may view the CEO transition as a source of uncertainty while Herbalife works to sustain its turnaround. Herbalife leadership changes
• Negative Sentiment: Reports indicate that a softer margin outlook is clouding the otherwise improving operating trends. This could pressure future earnings even as sales volumes accelerate. Herbalife outlook report

Analyst Upgrades and Downgrades

Several research firms have issued reports on HLF. Wall Street Zen downgraded shares of Herbalife from a “buy” rating to a “hold” rating in a research note on Sunday. Zacks Research lowered Herbalife from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 29th. UBS Group set a $21.00 target price on Herbalife in a research report on Thursday, September 17th. Weiss Ratings reissued a “hold (c)” rating on shares of Herbalife in a report on Thursday, October 22nd. Finally, Citigroup reissued a “buy” rating and issued a $17.00 target price (down from $21.00) on shares of Herbalife in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, Herbalife has an average rating of “Moderate Buy” and an average price target of $17.67.

Institutional Trading of Herbalife

A number of large investors have recently bought and sold shares of the business. Pekin Hardy Strauss Inc. grew its stake in shares of Herbalife by 0.7% in the 3rd quarter. Pekin Hardy Strauss Inc. now owns 316,170 shares of the company’s stock valued at $3,835,000 after purchasing an additional 2,176 shares during the last quarter. Vise Technologies Inc. purchased a new stake in shares of Herbalife during the third quarter worth approximately $160,000. State of Wyoming raised its stake in shares of Herbalife by 78.3% during the third quarter. State of Wyoming now owns 66,845 shares of the company’s stock worth $811,000 after purchasing an additional 29,361 shares during the last quarter. Signaturefd LLC lifted its holdings in shares of Herbalife by 135.1% during the third quarter. Signaturefd LLC now owns 2,222 shares of the company’s stock worth $27,000 after purchasing an additional 1,277 shares during the period. Finally, CWA Asset Management Group LLC acquired a new stake in shares of Herbalife during the third quarter worth $1,052,000.

Herbalife Stock Up 9.5%

The company has a fifty day moving average of $12.73 and a two-hundred day moving average of $13.99. The stock has a market capitalization of $1.52 billion, a price-to-earnings ratio of 9.38, a P/E/G ratio of 0.44 and a beta of 0.78.

Herbalife Company Profile

Herbalife Ltd. (NYSE: HLF) is a global nutrition and wellness company that develops and distributes products through a network of independent members and distributors. Its offerings include meal-replacement shakes, protein and other dietary supplements, vitamins, sports nutrition products, and personal-care items.

Founded in 1980 by Mark Hughes, Herbalife sells its products through direct-selling channels rather than primarily through traditional retail stores. Independent distributors market the products, provide product guidance, and may operate nutrition clubs or similar community-based businesses.

The company serves customers across numerous markets in North America, Latin America, Europe, Asia-Pacific, and other regions.