Herbalife(US:HLF) The Motley Foolยท2024-02-15 23:21Core Viewpoint - Herbalife's shares dropped significantly by 31.7% following a substantial earnings miss in the fourth quarter of 2023, with adjusted earnings declining 47.2% year over year [1][2]. Financial Performance - Herbalife's fourth-quarter 2023 net sales increased by 2.5% year over year, reaching $1.215 billion, while adjusted earnings fell to $0.28 per share, missing analysts' expectations of $0.39 per share [2]. - Yearly revenue for Herbalife decreased by 2.7% compared to 2022, despite a slight increase in Q4 revenue [3]. Cost Management and Debt Reduction - The company is undergoing a "transformation program" aimed at optimizing costs and enhancing revenue growth, achieving approximately $70 million in cost savings in 2023, with expectations of at least $115 million in total savings for 2024 [2]. - Herbalife reduced its debt by $155 million, including $126 million in early repayments from its senior credit facility and 2024 convertible notes [2]. Future Outlook - Herbalife did not provide quarterly guidance and indicated that revenue for 2024 is expected to remain relatively flat compared to 2023, contrasting with analysts' projections of modest growth around 1.4% [4].