Herbalife Profit Jumps 30 PercentMonday, July 29, 2013
Shares of Herbalife Ltd. rose nearly 6 percent in after-hours trading Monday after the nutritional supplement maker reported better-than-expected second-quarter profit and raised its full-year guidance.
After the markets closed, the Los Angeles company reported net income of $143 million ($1.34 per share) up 30 percent from the same period a year earlier. Revenue rose 18 percent to $1.22 billion.
Adjusted profit was $1.41 a share. Analysts surveyed by Thomson Reuters on average expected adjusted profit of $1.18 on revenue of $1.16 billion.
Herbalife, which since December has been fighting accusations by New York hedge fund manager Bill Ackman that its independent distributer system is run like a pyramid scheme, said its strongest percentage growth was in China, where its sales are mainly done out of retail storefronts. Also strong was Central/South America, where distributors often operate storefront-like clubs that serve nutrition shakes and other products per-serving rather than in bulk.
“We reported our 15th quarter in a row of double digit top-line growth, reflecting the success that our products and distribution model are having in markets around the world," Chief Executive Michael O. Johnson said in a statement.
Herbalife raised its full-year forecast for adjusted earnings to $4.83 to $4.95 a share from $4.60 to $4.80. The Wall Street consensus had been $4.79.
Shares earlier closed up $3.63, or 2 percent, to $60.57 on the New York Stock Exchange, and rose 5.8 percent in after-market trading.