Shares of Herbalife fell in after-hours trading Monday after the Los Angeles company reported a decline in net income.
Herbalife, which sells weight-loss products and nutritional supplements through a multi-level network of distributors, reported net income of nearly $120 million ($1.31 a share) for the three months ended June 30, down nearly 17 percent from the same quarter last year. Its net sales of $1.3 billion were up 7 percent from the year earlier.
The company’s adjusted net income was $141 million ($1.55 a share) was down about 6 percent from the same quarter last year.
Analysts had projected adjusted earnings per share of $1.57.
Herbalife was in the news last week when hedge fund manager William Ackman of Pershing Square Capital Management gave a lengthy presentation in which he said he would prove the company operates as an illegal pyramid scheme. The presentation, however, appeared to be unpersuasive as Herbalife’s share prices increased over the following days.
It was a different story on Monday. Shares of Herbalife fell $7.58, or about 11 percent, to $59.90 a share in after-hours trading on the NYSE.