Herbalife Lifts Outlook, Though Volume Slides
November 03 2015 - 6:00PM
Dow Jones News
Herbalife Ltd. on Tuesday lifted its earnings outlook for the
year, though the nutritional-products company logged a decline in
volume for its third quarter despite double-digit growth in
China.
Shares, up 53% this year, fell 2.5% in after-hours trading.
Herbalife sells a range of products, including weight-loss
shakes and fitness supplements, operating through a global network
of independent distributors.
The company has been embroiled in a public battle with Pershing
Square Capital Management LP's William Ackman, who has attempted to
convince other investors that Herbalife is a pyramid scheme.
Herbalife has denied the accusations, but shares of the company
have been volatile since Mr. Ackman first disclosed a
billion-dollar bet against the company in December 2012.
In the latest quarter, world-wide volume slipped 3%, as 24%
growth in China was offset by a 6% decline in North America, a 15%
drop in Asia Pacific and a 5% slump in Mexico.
Overall, the company reported earnings of $93.6 million, or
$1.09 a share, compared with year-earlier earnings of $11.2
million, or 13 cents a share.
The quarter included $2.8 million in expenses incurred to
respond to attacks on the company's business model and $4.7 million
in expenses related to regulatory inquiries.
Excluding those and other special items, per-share earnings were
$1.28 a share.
Sales fell 12% to $1.1 billion, but would have grown 5%
excluding currency swings.
Analysts polled by Thomson Reuters expected $1.05 a share in
adjusted earnings and $1.15 billion in revenue.
For the 2015 year, the company now expects earnings, excluding
items, of $4.65 to $4.75 a share, up from its previous range of
$4.50 to $4.70 a share in earnings.
For 2016, the company forecast adjusted earnings of $4.35 to
$4.75 a share, including a 50 cent headwind from currency
fluctuations.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 03, 2015 17:45 ET (22:45 GMT)
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