Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Herbalife Posts 22% Jump in Q4 Profit, but Investors Remain Cautious (HLF)

Wednesday, February 20, 2013 4:55 AM
Nutritional products giant Herbalife Limited (NYSE: HLF) reported late on Tuesday that its fiscal fourth-quarter profit jumped 22% over the year earlier period as sales of its weight-loss and nutritional products leaped 20%. However, shares fell nearly 1% in aftermarket hours as investors remain cautious, waiting for the Company to shed some more light over the allegations that its is running a pyramid scheme. It is believed that Herbalife could spend anything between $10 million to $20 million this fiscal in legal and advisory services as it gears up to defend itself over accusations  made by the Wall Street hedge fund manager, Bill Ackman that it is operating a pyramid scheme. Herbalife also reveled in its regulatory filing that the Securities and Exchange Commission is investigating its business practices. On Wednesday, the Company’s executives will hold a conference call to discuss fiscal 2012 results and investors can expect to hear more on this issue along with their outlook on 2013. The Controversy According to Ackman most of the Company’s distributors are losing money or just breakeven while some of the distributors who started doing business with Herbalife much earlier are getting richer by receiving commissions  for bringing others into the distribution business. Herbalife refutes these accusations, saying that all of the commissions are paid according to sales. When Ackman first disclosed these allegations in December shares had plummeted more than 40% in one week and although the stock rebounded after hedge funds managers capitalized on battered shares, they are still down 6.5% from its December levels. For the quarter, Herbalife reported a profit of $117.9 million, or $1.05 a share, up from $105.4 million, or 86 cents a share, in the year earlier quarter. Net sales during the period climbed 20% to $1.06 billion. Last month, the Company had forecasted earnings of $1.02 to $1.05 a share on 20% growth in sales.
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Citigroup seeks stay on Argentine debt order; gov't threatens penaltiesCitigroup seeks stay on Argentine debt order; gov't threatens penalties
NEW YORK (Reuters) - Citigroup Inc <C.N> plans to ask a U.S. judge to put on hold an order barring it from processing payments on $8.4 billion in bonds issued under Argentine law following the...
Investors warn on bubble risk as bonds seen overpricedInvestors warn on bubble risk as bonds seen overpriced
NEW YORK (Reuters) - Two widely followed big investors on Monday said that bonds are at worrisome levels, sounding the alarm about a potential bubble. "Bonds are at ridiculous levels," said Julian R...
N.Y. financial regulator says to focus on cyber securityN.Y. financial regulator says to focus on cyber security
NEW YORK (Reuters) - New York`s financial regulator said on Monday his agency will focus on cyber security over the next year, saying the possibility of a systemic attack to the financial system is ...
Starbucks testing stout beer-flavored 'dark barrel latte'Starbucks testing stout beer-flavored 'dark barrel latte'
(Reuters) - Dark beer lovers take note. Starbucks Corp <SBUX.O> is testing a "dark barrel latte" in a handful of its cafes in Ohio and Florida. The non-alcoholic drink includes a chocolaty sto...
Wells Fargo admits to control problems from insider-trading caseWells Fargo admits to control problems from insider-trading case
WASHINGTON (Reuters) - A unit of Wells Fargo will admit to wrongdoing and pay a $5 million penalty to settle charges that it failed to have adequate controls in place to prevent an employee from illeg...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.