Herbalife Shares Surge 12% As Profit Beats Estimates

Herbalife Ltd shares surged 12% in after-hours trade Tuesday, after the company blew past first-quarter earnings estimates. The nutrition and healthcare products company said it had net income of $78.2 million, or 92 cents a share, in the quarter, up from $74.6 million, or 74 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.11, well ahead of the FactSet consensus of $1.00. Sales fell 12% to $1.1 billion, weighed down by the strong dollar, but were in line with the FactSet consensus. Currency movements shaved 30 cents off after-tax earnings, including the impact of the devaluation of the Venezuela bolivar, said the company. Looking ahead, it said it expects currency moves to shave about 40 cents off second-quarter EPS and $1.26 off full-year EPS. Shares have gained 6% in the year so far through Tuesday's close, while the S&P 500 has gained 1.5%.