Herbalife Ltd. (NYSE: HLF)
Herbalife Ltd. (HLF) a nutrition company on Thursday after the market closed reported their fourth quarter and full year 2015 financial results. Herbalife reported fourth quarter adjusted earnings of $1.19 per share which beat analyst expectations of $0.94 per share. Herbalife reported revenues of $1.1 billion which beat analyst expectations of $1.06 billion. Additionally Herbalife announced that it has started discussions with the Federal Trade Commission about resolving the probe that started back in 2014. Although the outcome of the discussions is not clear investors seem to be optimistic that the issue will be resolved without any further damages against the company.
Herbalife Ltd. CEO’s Comments
Michael O. Johnson, chairman and CEO, Herbalife, stated, “2015 was a significant year for Herbalife, as we completed the rollout of bold and important changes to the marketing plan that will enhance the long-term and sustainable growth of our business. We successfully navigated the associated short-term challenges, believing that we were making the right changes at the right time, and despite ongoing currency and macroeconomic challenges, we finished the year returning to growth.”
Johnson continued, “Across the globe, we see more and more health-conscious consumers looking to take their nutrition and health more seriously. We believe Herbalife is well positioned to meet these consumers’ needs through our extensive product range and the personalized approach of our members.” Business Wire
HLF Technical Analysis
HLF gapped up in price yesterday to $51.95, up from the prior day’s close of $45.76, which is a 14% increase in price.Taking a look at the daily chart we can see that the last time HLF traded above this price level was on January 5th when it traded at $54. Taking a closer look at the daily chart we can see that HLF has been on a recent upswing dating back to February 8th when it traded at $43.42. HLF has a float of 61.62 million shares and is trading 6 times the normal daily trading volume. HLF did reach pre market highs of $52.39, but gave back $0.44 at the open, or equivalent to 1%. For trading purposes, my entry point would have been $52 looking for a run to $54. My stop loss would have been $51.75, fearing anything below that and the stock would start to fill in the gap up.
Herbalife Ltd., a nutrition company, develops and sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products, and personal care products. The company offers science-based products in four principal categories, including weight management; targeted nutrition; energy, sports, and fitness; and outer nutrition. The weight management product portfolio includes meal replacement, protein shakes, drink mixes, weight loss enhancers, and healthy snacks. The targeted nutrition products comprise dietary and nutritional supplements containing herbs, vitamins, minerals, and other natural ingredients. The energy, sports, and fitness portfolio consists of products that support a healthy active lifestyle. The outer nutrition products include facial skin, body, and hair care products. The company also offers literature, promotional, and other materials, including start-up kits, sales tools, and educational materials. Herbalife Ltd. offers its products through retail stores, sales representatives, sales officers, and independent service providers. It operates in North America, Mexico, South and Central America, Europe, the Middle East, Africa, the Asia Pacific, and China. The company was founded in 1980 and is based in George Town, the Cayman Islands. Yahoo Finance