Herbalife Ltd. (HLF) has demonstrated inconsistent earnings over the past year, with fluctuations in net income and revenue.
- Q4 2023 to Q4 2024 Net Income Comparison:
- In Q4 2023, Herbalife reported a net income of $142.2 million1.
- By Q4 2024, the net income had increased to $254.3 million2.
- This indicates a positive trend in net income over the past year, with a substantial increase in earnings.
HLF Net Income YoY, Net Income
- Earnings Growth and Challenges:
- Herbalife's earnings per share (EPS) grew by an impressive 76% last year3.
- However, the latest three-year period has seen a 40% drop in EPS in aggregate3.
- Analysts estimate a 29% decrease in earnings for the next year3.
- This suggests that while there has been a strong performance in the recent past, there are concerns about the sustainability of earnings growth.
- Revenue Trends:
- Herbalife's revenue was down $41.00 million from the same period last year in Q3 20244.
- This decline in revenue, coupled with the earnings fluctuations, indicates a challenging period for the company.
- Unusual Items Impact:
- Herbalife's statutory profit was reduced by $53 million due to unusual items over the past twelve months5.
- The impact of these unusual items highlights the importance of understanding the company's earnings beyond the headline numbers.
In conclusion, while Herbalife has shown an increase in net income from Q4 2023 to Q4 2024, the consistency of its earnings over the past year is mixed. The company has faced challenges with a decline in revenue and a projected decrease in earnings, which may raise concerns among investors about the stability of its financial performance.