Herbalife Shares Drop, but CEO Optimistic

  |   06 November, 2014   |   597   |   3980

Global health and wellness company Herbalife Ltd. (HLF—NYSE) reported its third quarter earnings on Monday after markets closed, disappointing investors with its earnings miss and a lower than anticipated fourth quarter outlook. Adjusted net income for the quarter was $125.1 million, or $1.45 per diluted share, compared to $152.1 million, or $1.41 per diluted share for the same period in 2013.



On the news, shares dropped 11 percent to $49.60 during after-hours trading, according to MarketWatch, and continued to fall to $44.26 by close on Tuesday. Wall Street expected earnings per share to come in at $1.51, up from $1.41 at the same time last year.



On a positive note, Herbalife reported net sales of $1.3 billion, reflecting an increase of 4 percent compared to the same period in 2013, and, according to CEO Michael O. Johnson, the quarter saw volume increases in two-thirds of the company’s 91 countries, especially Russia and China.