HERBALIFE BEATS EARNINGS AND REVENUE ESTIMATES, BOOSTS FORECAST

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REUTERS/Brendan McDermid

Herbalife’s Q1 2013 earnings are out.

Adjusted earnings per share came in at $ 1.27, better than the $ 1.06 expected by analysts.

Revenues came in at $ 1.12 billion, in line with company guidance but slightly above analysts’ estimates for $ 1.11 billion in sales.

The company also raised full-year 2013 earnings guidance to a range of $ 4.60-4.80 per share. Analysts were expecting $ 4.66.

Shares are up slightly in after-hours trading.

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Below is the text from the release:

LOS ANGELES–(BUSINESS WIRE)–

Herbalife Ltd. (HLF) today reported first quarter net sales of $ 1.1 billion, reflecting an increase of 17 percent compared to the same time period in 2012 on volume point growth of 13 percent. Adjusted1 net income for the quarter of $ 137.4 million, or $ 1.27 per diluted share, compares to 2012 first quarter net income of $ 108.2 million and EPS of $ 0.88, respectively. On a reported basis, first quarter 2013 EPS of $ 1.10 increased 25 percent compared to the $ 0.88 reported in the comparable quarter last year.

“We continue to deliver record results in sales and profitability as our independent distributors successfully execute numerous growth strategies that enable deeper market penetration, developing customers using our weight management and targeted nutrition products every day,” said Michael O. Johnson, Herbalife’s chairman and CEO. “Obesity and poor nutrition are global public health problems. Our distributors are proud to be part of the solution.”

For the quarter ended March 31, 2013 the company generated cash flow from operations of $ 137.6 million, an increase of 14 percent compared to 2012; paid dividends of $ 30.9 million; invested $ 24.9 million in capital expenditures; and repurchased $ 162.4 million in common shares outstanding under our share repurchase program.

Herbalife is arguably one of the most embattled stocks in America as multiple hedge fund titans square off over its future.

On one side is Bill Ackman, who released a massive, 342-slide presentation in December arguing that the company was a Ponzi scheme and that shares would go to $ 0. Ackman describes his hedge fund’s short position in Herbalife as “enormous.”

On the other side are activist investor Carl Icahn and hedge fund manager Dan Loeb, who both decided to invest in the stock after Ackman went public with his short call.

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EBay second-quarter forecast disappoints, shares slip

By Alistair Barr

SAN FRANCISCO (Reuters) – EBay Inc on Wednesday gave a disappointing earnings forecast for the second quarter, and its shares slipped in after-hours trade.

The e-commerce company forecast a second-quarter profit of 61 to 63 cents per share and revenue of $ 3.8 billion to $ 3.9 billion.

Analysts were looking for earnings of 66 cents a share on revenue of $ 3.95 billion, according to Thomson Reuters I/B/E/S.

Late last month, eBay set aggressive three-year growth targets, based on international expansion plans and more focus on mobile commerce.

The company is investing heavily in these initiatives and such spending may be behind the weaker second-quarter profit forecast, said R.J. Hottovy, an equity analyst at Morningstar.

“These investments are building for the future so that should be taken positively, even if they come at the expense of short-term profits,” Hottovy added, while noting that eBay’s full-year 2013 forecasts remained unchanged.

EBay shares fell 1.8 percent to $ 55.10 in after-hours trading on Wednesday.

The company also reported earnings of $ 829 million, or 63 cents per share, for the first quarter, compared with $ 725 million, or 55 cents a share, in the same period last year. Revenue was $ 3.75 billion, up from $ 3.28 billion a year earlier.

EBay was expected to earn 62 cents a share in the first quarter on revenue of $ 3.76 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Alistair Barr; Editing by Steve Orlofsky)


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Action Semiconductor increases revenue forecast

Actions Semiconductor Co. Ltd., a Chinese company that makes semiconductors for consumer electronics, on Tuesday raised its revenue guidance for the first quarter based on a preliminary review of its financial performance.

The company now expects revenue of $ 16 million to $ 16.5 million, up from a prior forecast of $ 12 million to $ 13 million. Actions Semiconductor said the improved forecast comes from stronger-than-expected sales of its newest tablet product.

The company will report full quarterly results in May.

Shares of Actions Semiconductor jumped 8 percent to $ 2.85 in after-hours trading.


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Synnex falls as co. gives weak 2Q profit forecast

NEW YORK (AP) — Shares of Synnex declined in afternoon trading on Thursday as the high-tech contractor forecast fiscal second-quarter earnings below Wall Street’s expectations.

THE SPARK: Synnex Corp. said late Wednesday it expects second-quarter earnings in a range of 78 cents to 82 cents per share on revenue between approximately $ 2.43 billion and $ 2.53 billion. Analysts polled by FactSet expect earnings of 92 cents per share on revenue of $ 2.5 billion.

The company also reported first-quarter earnings of 88 cents per share on revenue of $ 2.46 billion. Wall Street forecast earnings of 88 cents per share on revenue of $ 2.44 billion.

THE ANALYSIS: Matthew Sheerin of Stifel Nicolaus said in a client note that Synnex’s second-quarter earnings guidance came in below estimates due to increased pricing pressure and softer demand for larger-volume products like printers and notebook/desktop personal computers. The analyst said the company is also dealing with weakening demand in Canada, which makes up about 15 percent of its sales.

Sheerin reaffirmed a “Hold” rating.

Brean Capital’s Ananda Baruah continues to like Synnex despite the soft second-quarter earnings outlook. The analyst said that Synnex plans to defend share in the high-volume print and PC categories, with history showing that competitive pricing pressure in these areas is typically short lived.

Baruah said the company’s balance sheet is still solid and views it as an attractive long-term opportunity. The analyst maintained a “Buy” rating and increased Synnex’s price target to $ 43 from $ 40.

Synnex CEO Kevin Murai said during a conference call on Wednesday that the company is optimistic about its competitive position and business strategy and believes it is well positioned to grow sales and profitability over the long term.

SHARE ACTION: Synnex Corp.’s stock fell $ 4.08, or 10 percent, to $ 36.80. The shares have traded in a 52-week range of $ 30.70 to $ 41.22. For the year to date, the shares are up about 19 percent.


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Krispy Kreme issues disappointing forecast

WINSTON-SALEM, N.C. (AP) — Krispy Kreme Doughnuts Inc.’s fiscal fourth-quarter net income dropped sharply due to a one-time gain in the prior year. Its adjusted profit fell just shy of market expectations.

The doughnut store operator, based in Winston-Salem, N.C., also issued a disappointing full-year forecast and its shares slipped in after-hours trading Thursday.

Krispy Kreme reported after the market closed that it earned $ 4.8 million, or 7 cents per share, for the quarter that ended Feb. 3. That’s compared with net income of $ 143.5 million, or $ 2.01 per share, in the same quarter of the prior year, which had a $ 139.6 million credit from the reversal of valuation allowances on deferred income tax assets. It earned 11 cents per share versus 6 cents per share on an adjusted basis.

The company’s total revenue increased 16 percent to $ 118.1 million from $ 102 million with some help from an additional week in the most recent quarter

Krispy Kreme’s revenue from stores open at least a year, on a comparable basis, increased 7.5 percent for the quarter. That is considered a key indicator of financial performance as it strips away the impact of recently opened or closed stores.

Analysts polled by FactSet, on average, were anticipating earnings of 12 cents per share on revenue of $ 117 million.

The company forecast adjusted earnings between 53 and 57 cents per share in its fiscal year 2014. Analysts had forecast earnings of 58 cents per share.

It said it expected continued growth in sales at its domestic stores opened at least a year but sales growth at its international franchise stores “will likely remain pressured by the substantial growth in international markets in recent years.”

Krispy Kreme estimates the company and its domestic franchisees will each open about 10 stores and that its international franchisees will open 75 locations in the current fiscal year.

Shares fell 75 cents, or 5 percent, to $ 14.20 in after-hours trading on the news. The company’s shares have traded between $ 5.86 and $ 15.33 in the past 52 weeks.


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