Herbalife Gets A Barron's Boost, But Drops After The Open

Benzinga

Herbalife (NYSE: HLF) shares traded higher in Monday’s pre-market session after receiving positive ink in Barron's before turning red on the market open.

Shares are down 19.7 percent since the company reported the first earnings miss in more than two years. Revenue was 3.7 percent below the revenue estimate at $1.31 billion versus $1.22 billion. This generated EPS of $1.55, $0.02 below what Wall Street was looking for.

Related Link: Barron's Recap: ETF Special Report

The column reported that “results could have been worse.” However, the column also cited Garrett Arms of Moon Capital Management, who said earnings could have been as low as $0.65 per share if a more realistic Venezuelan currency translation.

Herbalife’s second quarter earnings report was on the tail of a Bill Ackman whipsaw. Shares traded in $13 range over two days as Ackman drove the price down by implying a smoking gun, but failed to provide one.

The issue was last trading 2.05 percent lower to $51.49.

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