Ackman Beats Icahn On Herbalife's Q2 Earnings
Bill Ackman looks to have won another quarter in his battle against Carl Icahn.
Shares of Herbalife (NYSE: HLF) are down about 10 percent in after-hours trading after the company announced guidance far below Wall Street’s expectations. The company expects third quarter EPS in the range of $1.49 to $1.53 versus the $1.62 consensus. However, the release states that guidance does not include costs incurred to fight “short seller” allegations.
Second quarter revenue also missed the analyst consensus at $1.31 billion versus $1.36 billion. Nonetheless, sales are up seven percent year over year.
The company showed some scale by increasing its earnings by 9.9 percent year over year on just seven percent more revenue.
CEO Michael Johnson commented, "Our independent members are successfully executing numerous growth strategies to further develop customer loyalty and encourage individuals across our network to lead healthier, nutritious lives. Our members are proud to be a part of a solution to global public health issues and we value the integral role they play in Herbalife’s mission."
Shares of Herbalife were last trading at $60.67, down 10.09 percent in after-hours trading.
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