Herbalife Misses Sales Estimates, Announces Joint Venture And $1.5 Billion Buyback

Herbalife Ltd. HLF reported record full year volume in its fourth quarter earnings announcement after Thursday's market close.

The company also announced a joint venture with Tasly Holding Group, a leading traditional Chinese medicine company, that will be finalized within the next 60 days.

CEO Michael Johnson said, "The Herbalife Nutrition seed to feed philosophy ensures the quality and traceability of our ingredients from cultivation to the final delivery of products to customers, and Tasly has patents, clinical research, and traceability of key ingredients, making this a natural partnership."

• Herbalife reported Q4 Adjusted EPS of $1, beating estimates by $0.03
• Sales came in at $1 billion, missing by $50 million
• Reported a $1.5 billion buyback plan in the quarter
• Sees Q1 Adj. EPS of $0.75-$0.95, FY17 Adj. EPS of $3.65-$4.05
• Preferred US Members  ~300,000

"2016 was a dynamic and record-breaking year. Our members continue to successfully build customer-focused businesses, which is evident in our record volume and retention metrics. In addition, our new share buyback authorization is a further testament of our commitment to enhance shareholder value," Johnson added.

Shares of Herbalife fell more than 4 percent, but traded recently at $58.50, down about 1.5 percent.