Herbalife Posts Upbeat Q2 Earnings, Lifts FY15 Forecast

Shares of

surged over 3 percent in after-hours trading after the company reported better-than-expected earnings for the second quarter and lifted its full-year earnings forecast. The company reported quarterly net income of $82.8 million, or $0.97 per share, down from $119.5 million, or $1.31 per share, in the year-ago period. Its adjusted earnings declined to $1.24 per share from $1.55 per share. Its net sales dropped 11 percent to $1.2 billion, while local currency net sales rose 1 percent. Analysts were expecting a profit of $1.12 per share on revenue of $1.15 billion. The average estimate among 17 Estimize users was for earnings of $1.25 per share and revenue of $1.16 billion. Cash flow from operations climbed 26 percent year-over-year to $197.6 million. Michael Johnson, chairman and CEO, stated, "The second quarter continued the improving trends we saw in the previous quarter in terms of sales volumes and key sales leader metrics, and we believe we will see these positive trends continue through the second half of the year." For the full year, Herbalife now expects adjusted earnings of $4.50 to $4.70 per share, versus its earlier forecast of $4.30 to $4.60 per share. Herbalife shares gained 3.34 percent to $51.00 in the after-hours trading session.