Herbalife, McGraw-Hill: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of Herbalife ( HLF) surged in late trades on Monday after the Los Angeles marketer of weight management and nutrition products posted above-consensus quarterly profit and boosted its outlook for the rest of the year.

The company reported earnings of $111.2 million, or 88 cents a share, for the second quarter ended June 30 on revenue of $879.7 million, besting the average estimate of analysts polled by Thomson Reuters for a profit of 75 cents a share in the period on revenue of $829.4 million.

The stock was last quoted at $60.99, up 10%, on volume of nearly 150,000, according to Nasdaq.com. Based on a regular session close at $55.54, the shares were up more than 60% so far in 2011.

"We believe that we are just getting started," said Michael Johnson, the company's chairman and CEO, in a statement. "Eight consecutive quarters of growth in the average number of sales leaders ordering illustrates the engagement of the distributors and the strong foundation being built as Herbalife helps consumers tackle the global issues of obesity."

For the third quarter ending in September, Herbalife sees earnings of 71 to 76 cents a share with net sales growth ranging from 21-to-23% vs. Wall Street's current consensus estimate for a profit of 69 cents a share. It expects earnings of $2.97 to $3.07 a share with net sales growth of 22-to-24% for the full year vs. the average analysts' view for earnings of $2.91 a share.

Wall Street was overwhelmingly positive on Herbalife ahead of the report with all nine analysts covering the stock rating it a strong buy, and the median 12-month price target at $65.50.

Texas Roadhouse

Shares of Texas Roadhouse ( TXRH) fell in late trades after the Louisville, Ky.-based restaurant operator fell short of Wall Street's expectations for its fiscal second-quarter results.

The company also trimmed the top end of its outlook for the full year, citing inflation pressures on its margins and sales.

Texas Roadhouse reported earnings of $16.1 million, or 22 cents a share, on revenue of $279.6 million for the three months ended June 30, missing the average estimate of analysts polled by Thomson Reuters for a profit of 23 cents a share on revenue of $280 million.

The company now sees earnings growth of 5% for 2011, down from a prior forecast for growth of 5-to-10%.

The stock was last quoted at $14.90, down 10.4%, on volume of more than 160,000, according to Nasdaq.com. Year-to-date, the shares were already down 4%.


McGraw-Hill ( MHP) shares rose in late trades following a report that major shareholders plan to push the publishing company toward a reorganization.

According to The Wall Street Journal, hedge fund Jana Partners and the Ontario Teachers' Pension Plans want the company to separate its textbook operations from its Standard & Poor's ratings unit. The investors have increased their joint stake in McGraw-Hill to 5.2% of its outstanding stock, the WSJ article said.

The stock was up almost 6% to $43.80 on volume of around 60,000 in extended trading. The shares have risen nearly 15% so far this year.

-- Written by Michael Baron in New York.


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