Symbol Lookup
Register | Login My Watchlist | My Account | Logout
to View Your Portfolio

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.

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2015 the year you get RICH!

Latest Headlines

China stocks open slightly lower after biggest drop since summer routChina stocks open slightly lower after biggest drop since summer rout
SHANGHAI (Reuters) - China stocks opened slightly lower on Monday after falling more than 5 percent on Friday triggered by concerns over a widening probe by regulators into brokerages. The CSI300 in...
IMF's yuan inclusion signals less risk taking in ChinaIMF's yuan inclusion signals less risk taking in China
SHANGHAI/NEW YORK (Reuters) - When the International Monetary Fund agrees on Monday to add the Chinese yuan to its reserves basket in the biggest shake-up in more than three decades, the IMF can aff...
BOJ's Kuroda warns of risk from emerging market slowdownBOJ's Kuroda warns of risk from emerging market slowdown
NAGOYA, Japan (Reuters) - Bank of Japan Governor Haruhiko Kuroda warned on Monday that a slowdown in emerging economies, if prolonged, may hurt Japanese business confidence and discourage firms from i...
Oil prices rise slightly, investors eye OPEC meetingOil prices rise slightly, investors eye OPEC meeting
TOKYO (Reuters) - Crude oil prices rose in early Asian trade on Monday, although gains were limited as investors look ahead to an OPEC meeting where ministers from the oil producing group will set pol...
Amazon releases video showcasing unmanned delivery dronesAmazon releases video showcasing unmanned delivery drones
NEW YORK (Reuters) - Amazon <AMZN.O> has unveiled what its unmanned drones for package delivery would look like with a video launched on Sunday on the prototype of technology it announced two ...

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.

{localized={en_US=Terry}, preferredLocale={country=US, language=en}} {localized={en_US=Scott}, preferredLocale={country=US, language=en}}

Terry Scott
CEO of StockMarketWatch

View Profile

Learn the Stock Market

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

Be a Better
Trader, Today
PreMarket PRO Our New Streaming Realtime Pre-Market Product -- Click Here to Learn More