Herbalife Beats Estimates; Guidance Mixed (HLF)

Herbalife Ltd.

reports Q3 earnings of $1.17 versus consensus of $1.03. Herbalife Ltd. reports revenues of $688.4 million versus consensus of $687.09 million. Based on current business trends, FX rates as of the end of September, 2010, and the company's outlook for future performance, the company is initiating guidance for 2011 with a diluted earnings per share guidance range of $5.00 to $5.25 on a volume point growth of 8.0 to 10.0 percent and a net sales growth of 11.0 percent to 13.0 percent compared to the same period in 2010 and an effective tax rate range of 29.0 percent to 30.0 percent. The company's guidance for capital spending in 2011 is in the range of $80 million to $90 million. "Our distributors are driving momentum around the world by attracting and retaining long-term customers for our nutrition products, which builds successful and sustainable businesses," said Chairman and Chief Executive Officer Michael O. Johnson. "We are pleased by the broad and ongoing strength of our results this quarter, with all six of our regions experiencing volume growth and year-over-year improvement in active sales leaders." Shares of HLF are lower in the after-hours by 3.00%.