From The New Zealand Herald

Shares of Herbalife Ltd. jumped in after-hours trading Tuesday as the seller of supplements and weight-loss products boosted its outlook for the year.

The company now expects full-year earnings in the range of $4.30 to $4.60 per share, up from its previous forecast between $4.10 and $4.50 per share. Analysts expected $4.22 per share, according to FactSet.

For the current quarter ending in June, Herbalife expects its per-share earnings to range from $1.05 to $1.15. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.06.

The George Town, Cayman Islands-based company reported first-quarter profit of $78.2 million, or 92 cents per share. Earnings, adjusted for non-recurring costs, came to $1.29 per share. A year ago, Herbalife earned $74.6 million, or 74 cents per share.

It posted revenue of $1.11 billion in the period, a 12 percent decline. Excluding the impact of currency sales rose 4 percent. The company posted lower revenue in all regions except China, where revenue rose 21 percent to $164.2 million.

Shares of Herbalife jumped nearly 15 percent to $46 after the market closed Tuesday.

Herbalife’s shares are down about 34 percent in the past 12 months. The company has been under attack by activist investor Bill Ackman, who says Herbalife is a pyramid scheme. Herbalife has denied that.

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Related story

Herbalife raises guidance as earnings grow 4.8%

By Angela Chen from Market Watch

Herbalife Ltd. on Tuesday raised its outlook for the year as earnings rose a stronger-than-expected 4.8% in the first quarter.

Shares, up 6% this year through Monday’s close, surged 17% in recent after-hours trading.

The company raised its earnings guidance by 10 cents to $4.30 to $4.60 a share.

Herbalife, based in the Cayman Islands, sells a range of products, including weight-loss shakes and fitness supplements, operating through a global network of independent distributors.

The company had been embroiled in a public battle with Pershing Square Capital Management LP’s William Ackman. Mr. Ackman attempted to convince other investors that Herbalife is a pyramid scheme, accusations the company has strenuously denied. The company’s shares went on a roller-coaster ride after Mr. Ackman first disclosed a billion-dollar bet against the company in late December 2012.

In the latest quarter, volume fell in all regions except China, where there was a 25% increase. Sales fell in all regions, again excluding China, where there was a 21% increase. Excluding the effect of foreign exchange, sales grew 14% in the EMEA region and 16% in South and Central America, though it still dropped 8% in North America and 10% in Asia Pacific minus China.

Overall, the company earned $78.2 million, or 92 cents a share, compared with a year-earlier profit of $74.6 million, or 74 cents a share.

Excluding items such as the devaluation of the Venezuelan bolivar, earnings were $1.29 a share, down from $1.50 the year before.

Sales fell 12% to $1.11 billion due to the effect of the strong dollar.

Analysts had expected a profit of $1 a share on revenue of $1.09 billion.

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