Herbalife (HLF) Stock Surges in After-Hours Trading as Q1 Earnings Top Estimates
NEW YORK (TheStreet) -- Herbalife (HLF) - Get Report stock is soaring by 12.01% to $65.50 in after-hours trading on Thursday, after the company reported first quarter results that topped analysts' estimates.
After the market close, the nutritional products company reported adjusted earnings of $1.36 per share, beating analysts' estimates for $1.09 per share.
Revenue increased by 1% to $1.1 billion, above analysts' estimates for $1.07 billion.
The company anticipates that second quarter adjusted earnings will range between $1.10 and $1.20 per share, while revenue growth will be flat to up 3% year-over-year. Wall Street is looking for earnings of $1.16 per share on revenue of $1.19 billion.
Additionally, the company announced that its discussions with the FTC are in advanced stages, and it could face a settlement payment of roughly $200 million, according to CNBC.
The FTC began investigating whether Herbalife is a pyramid scheme after billionaire investor Bill Ackman announced in 2012 that he was shorting the company and viewed it as a pyramid scheme.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Herbalife's strengths such as its solid stock price performance, expanding profit margins and good cash flow from operations are countered by the fact that the growth in the company's net income has been quite unimpressive.
You can view the full analysis from the report here: HLF
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
