Herbalife 4Q Earnings Jump

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Nutritional supplement maker Herbalife Ltd. increased its first-quarter and full-year profit outlook after reporting fourth quarter earnings rose 39 percent on stronger worldwide sales.


Los Angeles-based Herbalife said on Monday that it expects quarterly earnings per share of 52 cents to 57 cents, up from a prior range of 50 cents to 55 cents. That compares to the 54 cents a share expected by a consensus of Wall Street analysts.


Herbalife, which uses independent distributors to sell its weight loss and nutritional products, raised its full-year 2007 earnings guidance to a range between $2.43 per share to $2.50 per share, up from a prior range of $2.40 to $2.47. Analysts have been projecting income of $2.43 per share.


Fourth quarter earnings rose to $41.7 million, or 56 cents per share, from $30 million (41 cents) a year ago. Excluding special items, Herbalife said it earned 59 cents per share.


Sales rose 19 percent to $487.4 million. The company said sales in Mexico and Central America rose 36 percent to $95.7 million, with North American sales up 23 percent to $91.1 million. The company earlier this year warned that growth in Mexico might slow this year as the company sought to better control independent distributors who were not following company policies.


Herbalife shares closed down 3 cents to $37.75 on Monday but gained 35 cents to $38.10 in after-hours trading.