Herbalife Forecast Disappoints Wall Street


Herbalife Ltd. shares slid 22 percent on Tuesday, a day after the nutritional and weight-loss supplement distributer said third-quarter earnings rose 20 percent on stronger international sales, but disappointed Wall Street with its forecast for the rest of the year.

Los Angeles-based Herbalife reported net income of $58.1 million (89 cents per share), compared with $48.3 million (67 cents) a year ago. Sales growth in the U.S., Brazil, China and Italy contributed to a total revenue jump of 14 percent to more than $602 million.

Analysts surveyed by Thomson Reuters on averaged expected profit of 86 cents per share on revenue of $621 million. The company had fewer shares outstanding than a year ago.

For the year, the company anticipates $3.50 to $3.55 per share, while analysts expected $3.68 per share. In 2009, the company expects profit of $3 to $3.20 per share.

Herbalife shares fell $5.66, or 22 percent, in midday trading on the New York Stock Exchange.

No posts to display