Herbalife Ltd. (NYSE:HLF) released its earnings report for the three months through September this afternoon after the market closed on Wall Street. The company showed earnings per share of $1.41 for the quarter. Revenue for the period, which Herbalife records as its fourth quarter, came in at $1.21 billion. On today’s market shares in Herbalife trended down to finish trading at $67.92 per share.
In the run-up to the release of this earnings report analysts following Herbalife Ltd. (NYSE:HLF) were looking for earnings of $1.15 per share on revenue totaling $1.2 billion. In the same three months of 2012 the company earned $1.04 per share on revenue totaling $1 billion. The company has been growing quickly in recent quarters, but there are still obstacles in the way.
Herbalife obstacles
Herbalife Ltd. (NYSE:HLF) is the subject of one of the highest profile shorts going on right now. Bill Ackman says that the company’s shares are worth nothing, because its business model is illegal. The firm’s executives deny that charge wholeheartedly.
Ackman wants regulators to do something about Herbalife Ltd. (NYSE:HLF). So far they’ve not made any moves against the company, but there is a risk of regulators looking into the company’s practices. In spite of the risks, the company’s stock has risen pretty heftily throughout the year.
Herbalife performance
2013 has seen a large amount of growth in the value of Herbalife Ltd. (NYSE:HLF) stock. After ending 2012 on a down note following Bill Ackman’s initiation of a short campaign against Herbalife, the company rose more than 70% since January 1. The company has vastly outperformed major indices in the period.
Herbalife Ltd. (NYSE:HLF)’s future value depends on regulators deciding to either do something about the company, or leaving it alone. If regulators are swayed by Bill Ackman’s statements about the company, things could be dangerous going ahead. Herbalife executives will host an earnings call tomorrow morning at 11 AM EST in order to discuss this report.
