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Herbalife shares tick up amid revenue beat, increased forward guidance

Published 08/03/2016, 07:59 PM
Updated 08/03/2016, 08:05 PM
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Investing.com -- Emerging relatively unscathed from a highly-publicized settlement with the U.S. Federal Trade Commission last month, shares in Herbalife LTD (NYSE:HLF) rose by more than 2% after topping analysts' quarterly revenue forecasts and increasing its forward guidance on Wednesday.

During Herbalife's second quarter, the company saw its revenue jump 3.4% to $1.2 billion amid double-digit growth in North America and the Emerging Markets. Herbalife also withstood strong headwinds from the negative impact of currency translation, which led to declines in Mexico, South & Central America and the Asia Pacific regions. Excluding the impact of foreign exchange, Herbalife said revenues surged by 10% for the period.

Earlier last month, the FTC completed a two-year investigation of Hebalife after the Los Angeles-based company agreed to pay a $200 million fine to avoid being labeled as pyramid scheme. The settlement, which required Herbalife to overhaul its operating structure, allowed the company to sidestep charges that could have led to an eventual shutdown.

Herbalife shares rose by 2% after beating revenue forecasts on Wed.

In total, Herbalife suffered a loss of $22.8 million or 0.28 per share on the quarter, down from net income of $82.8 million or 0.97 per share over the same period a year earlier. Adjusted earnings per share, excluding the one-time impact from the settlement, increased to 1.29, up slightly from 1.24 during the second quarter of 2015.

"This has been a historic quarter for Herbalife, with worldwide record setting volume points and new volume point highs in four out of our six regions," said Michael Johnson, CEO of Herbalife in a statement. "This momentum reflects the strength of our distributors' businesses and with the FTC settlement announcement, I am more confident than ever in Herbalife's future."

Moving forward, Herbalife anticipates adjusted earnings per share of 4.50-4.80 for the year as a whole, up slightly from a previous annual outlook of 4.40-4.75 several months ago.

Shares in Herbalife rose by 1.44 or 2.15% to 68.48 in after-hours trading.

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