{"id":41688,"date":"2013-02-20T04:55:00","date_gmt":"2013-02-20T04:55:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/herbalife-posts-22-jump-in-q4-profit-but-investors-remain-cautious-hlf\/41687\/"},"modified":"2013-02-20T04:55:00","modified_gmt":"2013-02-20T04:55:00","slug":"herbalife-posts-22-jump-in-q4-profit-but-investors-remain-cautious-hlf","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/herbalife-posts-22-jump-in-q4-profit-but-investors-remain-cautious-hlf\/41688\/","title":{"rendered":"Herbalife Posts 22% Jump in Q4 Profit, but Investors Remain Cautious (HLF)"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p>Nutritional products giant Herbalife Limited (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=HLF\" target=\"_blank\" rel=\"noopener\">NYSE: HLF<\/a>) reported late on Tuesday that its fiscal fourth-quarter profit jumped 22% over the year earlier period as sales of its weight-loss and nutritional products leaped 20%.<\/p>\n<p><span id=\"more-41688\"><\/span><\/p>\n<p>However, shares fell nearly 1% in aftermarket hours as investors remain cautious, waiting for the Company to shed some more light over the allegations that its is running a pyramid scheme.<\/p>\n<p>It is believed that Herbalife could spend anything between $10 million to $20 million this fiscal in legal and advisory services as it gears up to defend itself over accusations \u00a0made by the Wall Street hedge fund manager, Bill Ackman that it is operating a pyramid scheme. Herbalife also reveled in its regulatory filing that the <a href=\"http:\/\/www.knowfinance.com\/u-s-securities-and-exchange-commission\/\" target=\"_blank\" rel=\"noopener\">Securities and Exchange Commission<\/a> is investigating its business practices.<\/p>\n<p>On Wednesday, the Company\u2019s executives will hold a conference call to discuss fiscal 2012 results and investors can expect to hear more on this issue along with their outlook on 2013.<\/p>\n<p>The Controversy<\/p>\n<p>According to Ackman most of the Company\u2019s distributors are losing money or just breakeven while some of the distributors who started doing business with Herbalife much earlier are getting richer by receiving commissions\u00a0 for bringing others into the distribution business.<\/p>\n<p>Herbalife refutes these accusations, saying that all of the commissions are paid according to sales.<\/p>\n<p>When Ackman first disclosed these allegations in December shares had plummeted more than 40% in one week and although the stock rebounded after hedge funds managers capitalized on battered shares, they are still down 6.5% from its December levels.<\/p>\n<p>For the quarter, Herbalife reported a profit of $117.9 million, or $1.05 a share, up from $105.4 million, or 86 cents a share, in the year earlier quarter. Net sales during the period climbed 20% to $1.06 billion.<\/p>\n<p>Last month, the Company had forecasted earnings of $1.02 to $1.05 a share on 20% growth in sales.<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20130221235911\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fherbalife-posts-22-jump-in-q4-profit-but-investors-remain-cautious-hlf%2F41688&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n<script id=\"mNCC\" language=\"javascript\">  medianet_width='600';  medianet_height= '250';  medianet_crid='814932888';  <\/script>  <script id=\"mNSC\" src=\"https:\/\/web.archive.org\/web\/20130221235911js_\/http:\/\/contextual.media.net\/nmedianet.js?cid=8CUT71M67\" language=\"javascript\"><\/script> \n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-finish-lower-for-a-second-consecutive-day\/41808\">\nStocks Finish Lower for a Second Consecutive Day<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/forex-market-update-euro-falls-against-dollar-and-yen\/41800\">\nForex Market Update: Euro Falls Against Dollar and Yen<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-bounce-back-silver-prices-also-gain\/41798\">\nGold Prices Bounce Back; Silver Prices also Gain<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-headed-for-a-second-straight-lower-finish-4\/41796\">\nStocks Headed for a Second Straight Lower Finish<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/hormel-lifts-full-year-guidance-hrl\/41795\">\nHormel Lifts Full-Year Guidance (HRL)<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/pegasystems-shares-rally-as-q4-earnings-comfortably-beat-estimate-pega\/41794\">\nPegasystems Shares Rally as Q4 Earnings Comfortably Beat Estimate (PEGA)<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/verifone-systems-shares-tumble-on-weak-earnings-outlook-pay\/41793\">\nVeriFone Systems Shares Tumble on Weak Earnings Outlook (PAY)<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20130221235911im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n\n<!--script type=\"text\/javascript\">\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\n<\/script>\n<script type=\"text\/javascript\"\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script-->\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nutritional products giant Herbalife Limited (NYSE: HLF) reported late on Tuesday that its fiscal fourth-quarter profit jumped 22% over the 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