Herbalife Outlook Down; Growth a Concern

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Herbalife Ltd. on Tuesday warned that 2016 earnings will be below analysts’ estimates. The Downtown Los Angeles-based nutrition company forecast earnings to be $4.35 to $4.75 a share next year, including a 50 cent headwind due to currency fluctuations. According to Bloomberg, analysts had estimated earnings at $5.18 on average.

Meanwhile, the company reported third-quarter profits that were well above projections even though sales dropped for the fourth straight quarter, largely due to the strong dollar.

The Street said that while the company boasted expanded profit margins and cash flow from operations along with a solid stock price performance, weak growth in the company’s earnings per share was a concern.

On Wednesday, Herbalife shares fell to $55.92, a decrease of 3.3 percent. The stock had gained more than 50 percent so far this year.

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