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Today marks the halfway point for earnings season here's where we stand so far.
What you have is 267.
Companies have reported so far let me back up right here we've got -- 176.
Have missed 67%.
24 companies resulted -- in results were in line with estimates.
The -- rate is 66%.
That the average for earning season Herbalife is set to report after the bell today the stock is up more than 80% this year.
Reportedly costing at least one person somebody who thought it was going to be a disaster short seller bill lack man.
Now he's got 200 million dollars in losses on paper joining me now for what to watch for is Tom -- -- capital IQ senior research director.
Tom I'm sure bill lacked and say please let it -- estimates please let it was definitely he really.
Has made a big -- thinking that this company was going down the tubes called it nothing short of a Ponzi scheme -- but it is done unbelievably well I wonder from somebody like you who has watched this company.
Would anybody have even noticed Herbalife if he hadn't jumped in and then Carl Icahn hadn't taken the other side of the straight.
Yeah obviously the and -- of high visibility investors has had a large bearing on how much attention Herbalife is getting.
But even before the controversy emerged late last year -- still relatively large company with a pretty good growth rate and I think he I think characteristics of the company -- just gotten more scrutiny in the last 67 months.
Okay scrutiny yes because you do have bill Blackman met -- of pershing who sang this thing is going down and then you -- Carl Icahn has seemingly jumped in and said no it's not.
He's the one who is now made quite a bit of money bill Blackman appears to have losses on paper what you think let's just go to the company itself how do you think they're gonna come in with their earnings now.
First I'm looking forward to before special items looking for a dollar nineteen vs the dollar ten last year I think my not my numbers about a penny above the street.
In general I think people be looking for what kind of impact if any.
All the negative headlines have had honorable life's operations in the last three or four months in particular.
All be focusing on the North America business to see how sales have been going there.
In North America to sales growth rate has already been decelerating.
In recent quarters was up 5% in the first quarter.
And I'll be looking to see how it comes in for the second quarter.
The pick complaint on behalf of bill Blackman was nobody's buying the stuff it's just as a pyramid scheme wherein people who are selling it then get other people to -- -- then get other people to sell it.
From your research has shown you aren't people buying -- -- shakes.
I think the company's done a decent job defending itself and part of that was releasing the results of a surveil I think last month.
Which indicated that 3% of US adults have bought our Herbalife product or for a three month period.
Well certainly that's not a majority of the US population it's still a meaningful enough number to provide some comfort to the -- hear that.
Herbalife products are being bought and potentially used by consumers.
I think -- there's been a confusion and flooring in the investing world over the last -- last year last 67 months over who are Herbalife -- consumers what up what are their distributors and what are they doing.
And I think the company has helped to clarify that some by trash talking about the idea that most of their distributors are probably taking on that role to get a discount on the products for themselves so there's a big blurring between distributors and consumers.
Tom you've got a price target of sixty -- -- hold what would make you switch it to a -- or at least to accumulate.
Well we -- I cannot comment on specifically what factors would cause me to change my opinion but as I said I'll be looking for the health of their north American business whether they're retaining their distributors.
And whether there are indications of whether the negative headlines have -- Hurt the company recently Tom graves of S&P IQ capital like to thank you very much --
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