Seeking Alpha

Herbalife Ltd. beats by $0.21, beats on revenue

  • Herbalife Ltd. (HLF): Q1 EPS of $1.50 beats by $0.21.
  • Revenue of $1.26B (+12.5% Y/Y) beats by $30M.
  • Shares +1.9%.
  • Press Release
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Comments (10)
  • grox01
    , contributor
    Comments (869) | Send Message
     
    Beautiful :)
    The raven's gang won't be happy...
    28 Apr 2014, 04:39 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (627) | Send Message
     
    Elimination of a dividend makes it cheaper to carry a short position.
    28 Apr 2014, 04:40 PM Reply Like
  • powershake
    , contributor
    Comments (1888) | Send Message
     
    Yeah, I'm sure that's why HLF elected to do it...

     

    Carl Ichan, doesn't seem to agree. Ichan "Great move by HLF to suspend dividend & buyback shares. HLF accelerates return to shareholders. Confirms confidence in the future."
    28 Apr 2014, 05:27 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (627) | Send Message
     
    The amount did not change. Only HFL can call the same number "accelerate". Icahn is learning fast from Herbalife's management :)
    28 Apr 2014, 05:46 PM Reply Like
  • intra
    , contributor
    Comments (51) | Send Message
     
    Exactly, Andrei. They just did Ackman a favor. The cash savings can now be used to further buoy the stock price.
    28 Apr 2014, 04:42 PM Reply Like
  • Andrei Volgin
    , contributor
    Comments (627) | Send Message
     
    Interestingly, over half of all share repurchases are under 10b-5 plan, which means the company is mainly buying shares from its own executives. Individual investors will be left holding the bag, as usual.
    28 Apr 2014, 04:44 PM Reply Like
  • Nate Acreman
    , contributor
    Comments (86) | Send Message
     
    10b5-1 is an exception to insider trading rule, obviously because Herbalife corporate is buying back the stock it can be assumed that they did so knowing insider information that isn't known to the general public. 10b5-1 is an exception to the insider trading rule that states if an entity is purchasing stock that has insider information, but are buying the stock at a predetermined time and date, prior to any information coming out, than it is not insider information.

     

    So when Herbalife says it is buying back stock under the rule 10b5-1 plan, it is just stating that it has a predetermined deadline in which those stocks will be purchased. Therefore 10b5-1 being stated is a CYOA to prevent someone from accusing them of committing insider trading. This not a statement of who they are buying stocks back from, so your assertion is purely speculation.
    28 Apr 2014, 08:43 PM Reply Like
  • ettaroo
    , contributor
    Comments (2) | Send Message
     
    do you know where we can find data on how much was purchased from 10b5-1 vs. in open market?
    28 Apr 2014, 09:21 PM Reply Like
  • webkowuite
    , contributor
    Comments (37) | Send Message
     
    And HLF misses by $0.55 per share on realized GAAP earnings, but that doesnt matter anymore these days...
    28 Apr 2014, 04:52 PM Reply Like
  • FrankArabia
    , contributor
    Comments (902) | Send Message
     
    I have a game called, "find a company that raised its guidance but cut its dividend (not named Herbalife)"
    28 Apr 2014, 10:44 PM Reply Like
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