Herbalife (HLF) Q2 Earnings: What To Expect

Health and wellness products company Herbalife (NYSE:HLF) will be reporting earnings tomorrow afternoon. Here's what investors should know.

Herbalife met analysts' revenue expectations last quarter, reporting revenues of $1.26 billion, flat year on year. It was an ok quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' organic revenue growth estimates.

Is Herbalife a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Herbalife's revenue to grow 1.1% year on year to $1.33 billion, a reversal from the 5.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.39 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Herbalife has missed Wall Street's revenue estimates twice over the last two years.

Looking at Herbalife's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. USANA's revenues decreased 10.6% year on year, missing analysts' expectations by 3.7%, and Boston Beer reported a revenue decline of 4%, falling short of estimates by 3.1%. USANA traded down 3.1% following the results while Boston Beer was up 7.4%.

Read our full analysis of USANA's results here and Boston Beer's results here.

There has been positive sentiment among investors in the consumer staples segment, with share prices up 3.2% on average over the last month. Herbalife is up 19.6% during the same time and is heading into earnings with an average analyst price target of $12.8 (compared to the current share price of $12.37).

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