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Investing.com -- Herbalife Nutrition Ltd. (NYSE:HLF) reported mixed first-quarter results, with earnings surpassing expectations but revenue falling short, leading to a 2.5% decline in its stock price in after-hours trading.
The global nutrition company posted adjusted earnings per share of $0.59 for Q1 2025, significantly beating the analyst estimate of $0.40. However, revenue came in at $1.22 billion, slightly below the consensus estimate of $1.23 billion and down 3.4% YoY.
Herbalife’s Q1 net sales were impacted by 480 basis points of foreign exchange headwinds. On a constant currency basis, net sales increased 1.4% YoY, marking the second consecutive quarter of growth excluding FX impacts.
The company’s adjusted EBITDA of $164.9 million exceeded guidance, with the adjusted EBITDA margin improving by 260 basis points compared to Q1 2024.
"2025 is off to a strong start," said John DeSimone, Chief Financial Officer. "We delivered net sales growth on a constant currency basis for the second consecutive quarter, adjusted EBITDA exceeded guidance, and we reduced our total leverage ratio to 3.0x, a target achieved ahead of plan."
For the second quarter of 2025, Herbalife expects net sales growth between -3.5% to +0.5% YoY on a reported basis, and -0.5% to +3.5% YoY on a constant currency basis.
The company revised its full-year 2025 guidance, narrowing the net sales range to -2.5% to +2.5% YoY, raising adjusted EBITDA expectations to $625-$655 million, and reducing capital expenditure projections to $90-$120 million.
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