By Kevin McCoy, USA TODAY

Some major hedge fund investors have sparred over Herbalife’s multi-level marketing structure

Herbalife, the nutrition products firm at the heart of dueling hedge fund claims about its financial viability, reported Monday that profits reached double-digit growth for a 16th consecutive quarter.

Reporting after financial markets closed, the Cayman Islands-based company said its third-quarter adjusted net income totaled $152.1 million, or $1.41 per share. That compared with $111.9 million and 98 cents per share for the same period last year.

Wall Street analysts had expected consensus earnings per share of $1.14, according to Thomson Financial Network.

Herbalife said third-quarter net sales rose 19% to $1.2 billion, and reported that cash flow from operations was $225.5 million, up 58% from the comparable period in 2012.

The company announced a 30-cent per share dividend to shareholder of record as of Nov. 12. Herbalife also raised its third-quarter guidance and unveiled fiscal year 2014 guidance of $5.45 to $5.65 per share.

After rising initially in after hours trading, Herbalife shares were down fractionally at $67.44 around 5:30 p.m. ET.

Herbalife CEO MIchael Johnson said the 2014 forecast “demonstrates our belief that the macro trend of global obesity will increase worldwide consumer demand for our products.”

The company’s shares were up more than 2.3% at $67.92 in after hours trading shortly before 5 p.m. EDT.

Herbalife markets protein shakes, vitamins, energy and fitness drinks and other nutritional supplements. Though widely popular, the company’s multi-level marketing structure has been a source of some controversy.

Last December, activist hedge fund founder Bill Ackman called Herbalife a pyramid scheme and said his Pershing Square Capital Management had taken an uncovered $1 billion short investment stake against the company. Herbalife repeatedly denied his accusation.

Subsequently, George Soros, Carl Icahn and other major investors took long positions in the company.

PHOTO: Susan Goldman

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