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Herbalife Ltd. (HLF)

  • Mon, Jan. 26, 6:04 PM
    • Herbalife (NYSE:HLF) will report Q4 and full-year results on February 26 after the close. The conference call will begin at 5:30 pm ET.
    • Consensus views for Q4 and 2014 are EPS of $1.25 and $5.80 on revenues of $1.17B and $4.99B, respectively.
  • Sat, Jan. 24, 2:30 PM
    • PE giant TPG Capital "seriously considered" buying Herbalife (NYSE:HLF) last year. It also took a look at Nu Skin (NYSE:NUS).
    • It is not clear why TPG’s interest in Herbalife and Nu Skin ended without any investment.
    • On Thursday, Avon (NYSE:AVP) jumped 15% on reports TPG was interested in acquiring it, only to drop 7.9% on Friday after Wells Fargo told clients in a note it was skeptical of the prospect.
    • If TPG does not buy Avon, it “might take a new look” at Herbalife, with its stock falling in half over the last 12 months, a source says.
    • Source: NY Post
  • Tue, Jan. 13, 3:50 AM
    • Renewing his attack on Herbalife (NYSE:HLF), Bill Ackman reiterated his prediction that the company's stock price will collapse to zero - within a year.
    • The hedge fund manager has been betting against Herbalife shares since 2012, claiming the company is a pyramid scheme.
    • "We shorted it at $47 but because of option premium, borrowing costs, dividends, investigative expenses, our break even is around $31, $32," Ackman said.
    • Herbalife's stock price closed at $32.73 yesterday after dropping 52% last year.
  • Mon, Jan. 5, 4:34 PM
    • Today's sell-off wasn't kind to Herbalife (NYSE:HLF) as it dropped 12% on a 67% spike in volume. Shares have plummeted more than 60% over the past year.
    • The company's fundamentals continue to deteriorate. Sales growth, earnings and cash flow from operations have all slowed. Guidance has also weakened. Updated 2014 numbers are: volume point growth: 2.7 - 3.5% from a high of 8 - 10%; net sales growth: 3.5 - 4.3% from a high of 10 - 12%; diluted EPS: $5.80 - 5.90 from a high of $6.17 - 6.32.
    • 2015 Guidance: volume point growth: 0 - 3%; net sales growth: -1 - 2%; diluted EPS: $5.45 - 5.75.
    • Zacks Investment Research downgraded the company on December 30 to Strong Sell based on its lower-than-expected Q3 results and weaker outlook.
  • Dec. 19, 2014, 11:54 AM
    • FDA Deputy Commissioner for Foods and Veterinary Medicine Michael R. Taylor sends Herbalife (HLF +1.1%) CEO Michael O. Johnson a letter requesting the company remove a broadcast advertisement on YouTube that mischaracterizes the regulator's role pertaining to dietary supplements. In the video, former FDA director Vasilios H. Frankos, Ph.D., states that during his time at the agency he made sure that nutritional supplements were safe and effective for use. This is surprising since the FDA does not regulate dietary supplements.
    • The FDA's request is far from urgent. The video was published on April 12, 2011.
  • Dec. 17, 2014, 2:19 PM
    • In an interview on Bloomberg Television, Pershing Square's Bill Ackman said that former top distributors for Herbalife (HLF +2.1%) have gone to investigators to substantiate his claims that the company operates an illegal pyramid scheme. During the interview, Mr. Ackman also provided a video from 2005 that shows a top distributor acknowledging that Herbalife operates a pyramid scheme.
    • An investigation into the company's practices by the Federal Trade Commission is ongoing.
    • HLF shares are down over 50% this year.
  • Dec. 11, 2014, 9:27 AM
    • Bill Ackman's Pershing Square Capital Management posts a new video this morning accusing Herbalife (NYSE:HLF) of continuing to make misleading claims about the medical benefits of some of its products. This would be a violation of a 1986 injunction handed down by a California Superior Court.
    • The 6.5-minute video also targets the apparent contradiction of Herbalife's statements about its R&D commitment to its "de minimis" R&D budget stated in its regulatory filing (2013 10-K). R&D spending the last three years was "not material." The company spent almost $60M in marketing in 2013.
    • Some consumers of Herbalife's products have complained to the FDA about adverse effects they've experienced.
  • Nov. 26, 2014, 8:34 AM
    • In a letter to shareholders, Pershing Square's Bill Ackman says recent developments at Herbalife (NYSE:HLF) reinforce the fund's short thesis.
    • Herbalife missed Q3 earnings consensus, reduced guidance and took an impairment charge on the currency exchange rate assumption pertaining to its business in Venezuela.
    • Previously: Herbalife chief boosts stake in company
  • Nov. 25, 2014, 5:34 PM
    • Herbalife (NYSE:HLF) calls it a vote of confidence, but others are skeptical, given the CEO parted with exactly $0 on the deal.
    • Michael Johnson was granted 750K in stock options 10 years ago which are set to expire next month. "Because of his complete confidence in the continued and future success of the company," he's holding onto all the shares except for those he needs to sell to cover the exercise price and taxes. The net effect: Johnson is boosting his stake in the company by about 292K shares for no additional cash investment.
    • Source: Press release
    • The stock's higher by 0.6% after-hours.
  • Nov. 14, 2014, 8:15 AM
    • SA Contributor Matt Stewart writes that Herbalife (NYSE:HLF) Chairman's Club and board member Pedro Cardoso is one of 12 people charged in a years-old embezzlement case in Brazil. Mr. Cardoso was a partner in a company that was connected to a firm that allegedly siphoned 26.7M Brazilian reais ($10.4M) from the state government in Espirito Santo under the guise of making donations to community centers, schools and hospitals. Instead, the money was used to fund private events that had no public interest.
    • The company in question is the Assembleia Legislativa do Espirito Santo (ALES) headed by Jose Carlos Gratz. Mr. Cardoso was a partner in a firm that cashed an ALES check in 1999 for 6,000 Brazilian reais that was signed by Mr. Gratz.
    • Under SEC disclosure rules, companies must report legal proceedings that are material in evaluating the integrity of a director. Herbalife has not done so. In a statement mailed to Reuters by an Herbalife official, Mr. Cardoso said the case is a private matter dating back to 1998 which has no bearing on his work with Herbalife. "I have received no official notification of any kind with regards to this matter, " he said.
    • The 8th Criminal Court of Vitoria ordered bailiffs to serve him with a subpoena in 2010 but they were unable to locate him because he moved several times without notifying the court so the case remains open.
    • Herbalife and the SEC declined further comment.
  • Nov. 4, 2014, 12:44 PM
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  • Nov. 4, 2014, 9:15 AM
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  • Nov. 4, 2014, 6:59 AM
    • Herbalife (NYSE:HLF) is down 17% premarket on light volume (although it's 2.5 hours before the open) in response to its earnings report yesterday. Net income was off 92%, year-to-date cash flow from operations was off 22% and guidance for sales growth is now negative.
  • Nov. 3, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: BLMN +19.4%. AUQ +9.0%. ABEV +8.5%. ELNK +8.3%. AMX +7.0%.
    • Top losers, as of 5:15 p.m.: BRDR -22.1%. SALE -18.2%. HLF -12.4%. CHGG -8.7%. S -6.8%.
  • Nov. 3, 2014, 5:02 PM
    • Herbalife (NYSE:HLFQ3 results ($M): Total Revenues: 1,256.2 (+3.5%); Gross Profit: 1,001.2 (+2.7%); Operating Income: 27.6 (-85.6%); Net Income: 11.2 (-92.1%); EPS: 0.13 (-90.2%); Quick Assets: 449.5 (-30.0%); CF Ops (9 mo.): 449.5 (-22.1%).
    • 2014 Guidance: Volume point growth (ex. Venezuela): 0 - 3% from 5 - 6%; Volume point growth including VZ: (3) - 0% from 2.7 - 3.5%; Net sales growth: (8) - (5)% from 3.5 - 4.3%; EPS ex. items: $1.30 - 1.40 from $5.80 - 5.90; capex: $52M - 62M from $170M - 180M; effective tax rate: 27 - 29% from 27.5 - 29.5%.
    • Shares off 13% after hours on robust volume.
  • Nov. 3, 2014, 4:44 PM
    • Herbalife (NYSE:HLF): Q3 EPS of $1.45 misses by $0.06.
    • Revenue of $1.26B (+4.1% Y/Y) misses by $60M.
    • Shares -13%.
    • Press Release
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Company Description
Herbalife Ltd is a nutrition company. The Companyalong with its subsidiariessells weight management, targeted nutrition, energy, sports & fitness, and outer nutrition products.