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 2015 the year you get RICH!

Latest Headlines

Web hosting company GoDaddy's shares rise 34 percent in debutWeb hosting company GoDaddy's shares rise 34 percent in debut
(Reuters) - GoDaddy Inc`s <GDDY.N> shares rose as much as 34 percent in their debut, valuing the Web hosting company at up to $5.48 billion, including debt. The company, which sponsors race ca...
Automakers profit from luxury models, North America, China -McKinseyAutomakers profit from luxury models, North America, China -McKinsey
NEW YORK (Reuters) - The world`s biggest automakers increasingly are making money by producing luxury models and reaping profits in China and North America, management consulting firm McKinsey &...
U.S. construction spending falls for second straight monthU.S. construction spending falls for second straight month
U.S. construction spending unexpectedly fell in February and the prior month`s outlays were revised to show a steeper decline than previously estimated, which could see economists further mark down th...
U.S. factory activity at five-month high in March: MarkitU.S. factory activity at five-month high in March: Markit
Growth in the U.S. manufacturing sector rose to a five-month high in March as output and employment gained, according to an industry report released on Wednesday. Financial data firm Markit said its...
Goldman economist says Fed hike could come early next yearGoldman economist says Fed hike could come early next year
STONE MOUNTAIN, Ga. (Reuters) - Goldman Sachs <GS.N> Economist Jan Hatzius said on Wednesday that he expected the Federal Reserve to raise interest rates very late this year, or early next year....

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.

Algorithm Based
Trade Signals
arrow
small cap swing trades SmallCaps stocks under $10
Index Signals Index Signals SPY, QQQ, DIA, IWM
options trading Mega Stocks options + stock trade signals
AppleStock FREE AAPL Signals realtime daytrade signals