Crispr Therapeutics shares tumble after significant earnings miss
Herbalife (NYSE:HLF) Nutrition Ltd. shares have touched a 52-week low, with the stock price plummeting to $6.21. The nutritional supplement company has faced a tumultuous period, reflected in the significant drop in its stock value. With a market capitalization of $631 million and trailing twelve-month EBITDA of $546 million, the company maintains a modest P/E ratio of 7.31. According to InvestingPro analysis, the stock appears undervalued at current levels. Over the past year, Herbalife's shares have experienced a steep decline, with the 1-year change data revealing a worrying -53.55% drop. This downturn has alarmed investors and analysts alike, as the company grapples with both competitive pressures in the wellness industry and internal corporate hurdles. The current low represents a critical juncture for Herbalife, as stakeholders look for strategies to stabilize and revitalize the company's market performance. InvestingPro analysis reveals the stock is in oversold territory, with a healthy gross profit margin of 44.85%. Discover more insights and 8 additional ProTips with an InvestingPro subscription.
In other recent news, Herbalife Ltd. reported a steady Q3 performance, meeting net sales guidance with $1.2 billion and exceeding expectations with an adjusted EBITDA of $167 million. The company also made significant strides in reducing its debt and improving its leverage ratio. Herbalife reported a growth in new distributor numbers and launched initiatives aimed at modernizing the brand and expanding its market reach.
Herbalife's Q4 net sales are expected to range from a 1% increase to a 3% decrease, with adjusted EBITDA projected between $105 million and $135 million. The company has updated its full-year net sales guidance to a decline of 1% to 2%, with adjusted EBITDA expectations increased to $590 million to $620 million.
Despite these positive developments, Herbalife faced a 3.2% year-over-year decrease in Q3 2024 net sales, primarily due to foreign exchange headwinds and volume declines. Additionally, the company still faces challenges in specific markets, particularly China where net sales have declined significantly. Nevertheless, Herbalife remains optimistic about future sales growth driven by an expanding distributor base and improved training programs.
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