Herbalife Names New CEO, Stock Falls Despite Earnings Beat

Herbalife Ltd. shares fell in the extended session Tuesday despite better-than-expected quarterly earnings, and the nutritional-supplements company announced its next chief executive. Herbalife reported quarterly net income of $87.7 million, or $1.01 a share, on sales of $1.1 billion. After adjustments for "expenses incurred responding to attacks on the company's business model" and other factors, Herbalife reported profit of $1.21 a share. Analysts on average expected Herbalife to report adjusted earnings of $1.09 a share on sales of $1.14 billion. Herbalife also detailed its CEO succession plan, announcing that COO Richard Goudis will take over the top spot on June 1, succeeding Michael Johnson, who will become executive chairman. Goudis was CFO for Herbalife from 2004 to 2009 and has been the company's operating chief since 2010. Herbalife has been the focus of attention for some of Wall Street's biggest names in recent history, with activist investor Carl Icahn taking a large stake in the company while rival Bill Ackman heavily shorts the stock and refers to it as a "pyramid scheme." Herbalife shares fell about 2% in late trading after declining 2.6% in the regular session.

Copyright © 2016 MarketWatch, Inc.