Herbalife Ltd. (HLF) has more than doubled the market’s return over the past year. Analysts polled by Zacks boosted forecasts on Herbalife’s recent reaffirmation of 2009 and 2010 earnings outlook.
Company Description
Herbalife Ltd. is a global network marketing company that sells weight-management, nutrition and personal care products. Its products are sold in 72 countries through a network of approximately 1.9 million independent distributors.
Bullish Forecasts and a Surging Share Price
Herbalife recently reaffirmed its earnings guidance for the 2009 and 2010 years. The company sees earnings ranging between $3.19 – $3.22 per share for 2009 and between $3.50 – $3.65 for 2010.
Analysts polled by Zacks hiked estimates in response. The 2009 Zacks Consensus Estimate of $3.20 per share was increased from $3.03 over the past 3 months. For 2010, analysts are forecasting $3.67 per share, up from the 3 months-ago level of $3.41.
The company is scheduled to report full-year and fourth-quarter results in late February.
During the past year, shares of HLF outperformed the market by more than 60%.
Exceeding Industry Averages
Herbalife boasts strong fundamentals, including an attractive valuation with a forward P/E of 11.75. The company’s return on equity (ROE) of 65% is well ahead of the industry average of 15%. Herbalife’s net profit margin 8% tops the industry average of a negative 3%. Herbalife rewards shareholders with an industry-leading dividend yield of 2%. Zacks Investment Research
