Herbalife, Facing Pyramid Scheme Accusations, Comes Up Short

  |   04 November, 2014   |   1168   |   3980

Embattled Los Angeles nutritional supplement company Herbalife posted earnings Monday that missed analysts’ estimates, thanks to changes in the value of Venezuelan currency and declining sales in the Americas.



The company reported net income of $11.2 million (13 cents a share) for the quarter ended Sept. 30, a 92 decrease from the same period a year earlier, when the company posted net income of $141.9 million ( $1.32 a share). The drop-off came despite an uptick in sales. Revenue rose 3.5 percent to $1.25 billion for the quarter.



The company’s numbers fell short of analysts’ expectations for both net income and revenue. Analysts believed earnings would be $1.53 on revenue of $1.32 billion. Herbalife pinned the poor results mostly on a reassessment of its Venezuelan assets. Venezuela is a big market for Herbalife.