{"id":19894,"date":"2012-07-31T09:49:49","date_gmt":"2012-07-31T13:49:49","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=19894"},"modified":"2016-09-20T12:14:43","modified_gmt":"2016-09-20T16:14:43","slug":"herbalife-hlf-upping-outlook-and-a-few-other-surprises","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2012\/07\/31\/herbalife-hlf-upping-outlook-and-a-few-other-surprises\/","title":{"rendered":"Herbalife (HLF) &#8211; Upping Outlook and A Few Other Surprises"},"content":{"rendered":"<p>When improving fundamentals are confirmed with a bullish chart pattern poised for a rapid move, there is a greater potential for a profitable trade. On Monday night, Herbalife (HLF) reported an impressive quarter for both EPS and revenue as well as a strong outlook for the rest of the year.<\/p>\n<p>Herbalife (HLF) beat EPS, revenues and boosted their outlook. You may recall that the company had also provided a good earnings report last quarter, but on that conference call the now famous &#8220;Einhorn query&#8221; spooked<!--more--> investors and shares slid 35%. The <a href=\"http:\/\/ir.herbalife.com\/eventdetail.cfm?EventID=115870\"><strong>conference call<\/strong><\/a> is scheduled for 11am ET. Assuming there are no surprise guests asking about some obscure earnings item, share could be ready to rally hard.<\/p>\n<p>As the earnings report looked solid on all counts, there is a rather significant fast zone\/gap that may be in play. Looking to get ahead of the move, investors bid up shares by 6.1% with good volume in the after-hours session.<\/p>\n<p>The table below shows the impressive growth the company was able to achieve this quarter:<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/07\/hlf_comps.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-13831\" title=\"hlf_comps\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/07\/hlf_comps.jpg\" alt=\"\" width=\"581\" height=\"250\" \/><\/a><\/p>\n<p>Some additional information:<\/p>\n<ul>\n<li>Second quarter volume points of 1.2 billion increased 23 percent with increases in each of its six regions compared to the prior year period.<\/li>\n<li>Second quarter EPS of $1.10 increased 25 percent compared to the prior year period EPS.<\/li>\n<li>Raising FY&#8217;12 EPS guidance to a range of $3.88 to $3.98.<\/li>\n<li>Board of directors approved a $0.30 per share quarterly dividend.<\/li>\n<li>Board of directors approved a new $1 billion share repurchase authorization.<\/li>\n<li>Company announces a $500 million increase in its credit facility.<\/li>\n<\/ul>\n<p>The cherry on top of the report was a new share repurchase plan.<\/p>\n<blockquote><p>Following the completion of the prior $1 billion share repurchase authorization, the company&#8217;s Board of Directors authorized a new $1 billion share repurchase authorization available to be utilized over the next 5-year period, expiring on June 30, 2017.<\/p><\/blockquote>\n<p>Looking at the chart indicators shows that above $55.60 and the shares could see a monumental short-squeeze.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/07\/hlf5.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-13829\" title=\"hlf5\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/07\/hlf5.jpg\" alt=\"\" width=\"560\" height=\"322\" \/><\/a><\/p>\n<p style=\"text-align: left;\">The earnings conference call is scheduled for 11am ET on Tuesday. We will be watching for any potential signs for a downside reversal. If there is anything odd that occurs, we will send an ALERT! with further information.<\/p>\n<p style=\"text-align: center;\">Link to original <a title=\"TPR ALERT!  HerbaLife (HLF)\" href=\"http:\/\/www.triggerpointresearch.com\/2012\/07\/26\/tpr-alert-herbalife-hlf-2\/\"><strong>ALERT!<\/strong><\/a> for Herbalife.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When improving fundamentals are confirmed with a bullish chart pattern poised for a rapid move, there is a greater potential for a profitable trade. On Monday night, Herbalife (HLF) reported an impressive quarter for both EPS and revenue as well as a strong outlook for the rest of the year. Herbalife (HLF) beat EPS, revenues [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[24,224,42],"tags":[487,490],"class_list":["post-19894","post","type-post","status-publish","format-standard","hentry","category-earnings","category-long-ideas","category-stocks","tag-earnings","tag-stocks","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/19894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=19894"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/19894\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=19894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=19894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=19894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}