Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>HLF reported 2Q adjusted diluted EPS of $0.59 versus $0.54, up 9.3%, and above FactSet consensus of $0.50. Management does not provide an EPS outlook.</li><li>2Q net sales of $1,259.1MM were down 1.7% Y/Y, within guidance of down 3.5% to up 0.5%, but slightly below consensus of $1,271.2MM.</li><li>Ex-currency, sales were flat Y/Y. Net sales included 170 bps of FX headwinds Y/Y, better than the 300-bp headwind expected in 2Q guidance.</li></ul>

HLF reported 2Q adjusted diluted EPS of $0.59 versus $0.54, up 9.3%, and above FactSet consensus of $0.50. Management does not provide an EPS outlook.2Q net sales of $1,259.1MM were down 1.7% Y/Y, within guidance of down 3.5% to up 0.5%, but slightly below consensus of $1,271.2MM.Ex-currency, sales were flat Y/Y. Net sales included 170 bps of FX headwinds Y/Y, better than the 300-bp headwind expected in 2Q guidance.

Herbalife Ltd: 2Q Adjusted EBITDA Upside on In-Line Sales