LOS ANGELES (AP) -- Nutrition formula and weight-loss company Herbalife Ltd. said Monday that its profit grew 27 percent in the third quarter as sales of supplements in China, Europe and South America increased.
For the quarter ended Sept. 30 the company posted net income of $142 million, or $1.32, up from $111.9 million, or 98 cents per share, in the same period of 2012. The company said total sales increased 19 percent to $1.21 billion. Adjusted for one-time gains and charges the company would have earned $1.41 per share.
Analysts polled by FactSet expected earnings per share of $1.14 on sales of $1.19 billion.
The company introduced guidance for 2014 and said it expects adjusted earnings between $5.45 and $5.65.
Analysts are looking for earnings per share of $5.66.
In a separate announcement Monday, the company announced that Dr. Richard Carmona, former surgeon general of the U.S., will be joining its board of directors. Carmona was nominated to the post by President George W. Bush in 2002 and confirmed by the Senate. He completed the standard four-year term in 2006.
Carmona's appointment increases the size of Herbalife's board of directors to 12 members.
Herbalife sells energy drinks and stress-management pills and recruits people to work as independent sales representatives. On its website, it promises to "change people's lives" either by the chance to sell Herbalife products, or the chance to take them.
Herbalife's business has become a point of contention between several prominent Wall Street figures. Activist investor Bill Ackman has publicly attacked Herbalife for months, saying it distorts the financial information it gives to investors. Rival investor Carl Icahn has vehemently disagreed and has increased his stake in the company
Company shares rose $1.55, or 2.3 percent, to $67.92 in regular-session trading before the release of the earnings report. They slipped 49 cents to $67.43 in extended trading.
- Company Earnings
- Richard Carmona