Herbalife shares sink after hours on disappointing 3rd-quarter report, outlook

MarketsAssociated Press

Herbalife Ltd.'s shares sank in extended trading Monday after the company reported disappointing third-quarter results and a weak outlook.

The seller of supplements and weight-loss products reported a profit of $11.2 million, or 13 cents per share, for the most recent quarter. That's down 92 percent from the $142 million, or $1.32 per share, earned last year.

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Herbalife was hurt by a $139.5 million charge tied to Venezuelan currency, along with other special items. On an adjusted basis, it earned $1.45 per share.

The results missed market forecasts. Analysts polled by FactSet were, on average, anticipating earnings of $1.51 per share.

Herbalife said that excluding the impact of currency translation in Venezuela, it had solid increases in both volume and net sales during the quarter. It reported revenue of $1.26 billion in the period, up from $1.21 billion last year. But analysts were anticipating revenue of $1.32 billion.

Shares fell 11.6 percent to $49.41 in extended trading Monday.

Herbalife said that it expects to earn between $1.30 and $1.40 on an adjusted basis for the current quarter; analysts were anticipating $1.68. It forecast full-year earnings in the range of $5.80 to $5.90 per share, while analysts were anticipating much higher with estimates of $6.26.

The Los Angeles company's stock added $3.44 to close regular trading at $55.90 but it has lost nearly 30 percent of its value since the beginning of the year.

Herbalife also said Monday that Leroy Barnes will retire after more than a decade serving on its board.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. HLF stock research report from Zacks.

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Keywords:Herbalife,Earnings Report