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Herbalife's Bullish Trifecta: Beat, Raise And FTC Disclosure Making Investors Very Happy

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Herbalife Ltd. (NYSE: HLF) shares are up nearly 15 percent on Thursday evening amid three positive catalysts: A top/bottom line beat in Q1, raised full-year EPS guidance and a disclosure that talks with the FTC are progressing.

Herbalife reminded investors that, as previously disclosed, the company is in discussions with the FTC regarding its advertising and marketing practices. "The discussions with the FTC are in the advanced stages, but there are still a number of material open issues that could preclude reaching final agreement," Herbalife said.

"If discussions with the FTC do not continue to progress, it is likely that litigation would ensue. Although we are confident in our legal position, litigation outcomes by their very nature are difficult to predict and there can be no assurance of a particular outcome," the company added.

Of note, CNBC and major media outlets are keying in on the bullishness behind the language, "advanced talks."

Herbalife also reported Q1 EPS of $1.36 versus $1.09 estimates and revenue of $1.11 billion versus $1.07 estimates. The company raised its FY2016 adjusted EPS guidance to a range of $4.40 to $4.75, from $4.05 to $4.50 previously.

Herbalife shares are near $66.75 on Thursday evening.

Posted-In: Earnings News Guidance Legal Movers


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