Herbalife Ltd shares rose more than 13 percent Tuesday, a day after the weight loss and nutritional supplement company reported better-than-expected first quarter earnings.
After the Monday markets closed, the Los Angeles company, which uses direct distributors to sell its products, reported net income of $88.3 million ($1.43 per share), compared with $61.5 million (98 cents) a year earlier. Revenue rose 29 percent to $795 million.
Analysts were expecting per-share profit of $1.21 on revenue of less than $737 million.
“Our ongoing efforts to globalize daily consumption-based distributor methods of operation continued to provide strong growth to both the top and bottom line growth in the first quarter,” Chief Executive Michael Johnson said in a statement. “The company’s strategic focus to provide solutions for two large mega trends, the global obesity epidemic and the desire for people to earn more income, continues to provide a large platform for us to succeed.”
The company said it expects full-year profit $5.54-$5.78 per share and a revenue growth of 18 to 20 percent. The Wall Street consensus is for $5.46 per share.
Shares on Tuesday closed up $13.29, or 14.7 percent, to $103.54 on the New York Stock Exchange.
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