Herbalife's (HLF) - Get Report stock price posted some healthy gains Wednesday after the dietary supplement company beat analysts' earnings estimates for the quarter, even as it warned the coronavirus could dampen sales in China.
Shares of Herbalife jumped 7.06% to $41.70 a share after the maker of weight-loss shakes and other products posted adjusted fourth-quarter earnings of 74 cents a share.
That beat Wall Street estimates of 63 cents a share for the three-month period. However, Herbalife came up short on revenue, reporting $1.2 billion in revenue for the quarter, missing analysts' estimates of $1.22 billion.
Herbalife also issued a cryptic cautionary note on the impact of the coronavirus on its operations in China. A major market for the company, China has been slammed by COVID-19, with the death toll from the coronavirus now topping 2,000 people.
"The extent and duration of the business disruption and related financial impact from the coronavirus cannot be reasonably estimated at this time but could materially impact our consolidated results for the first quarter and for the full year 2020," the company noted in its quarterly financial report.
Herbalife also noted its earnings per share for the fourth quarter were 5 cents lower due to $9 million spent on its "China Growth and Impact Investment Program."
Herbalife reported adjusted earnings per share of $2.82 a share for all of 2019, down from $2.88 a share in 2018. The company's outlay for its China sales program accounted for a 7-cents drop in its 2019 earnings, Herbalife said.