NEW YORK (TheStreet) -- Shares of Herbalife Ltd. (HLF) are falling by 5.69% to $41.74 as the stock continues to react negatively to this week's third quarter 2014 earnings results, which showed a decline in net income to $11.2 million, or 13 cents per diluted share, compared to $142 million, or $1.32 per diluted share for the year ago period.
The global nutrition company said its adjusted net income for the latest quarter was $125.1 million, or $1.45 per diluted share, compared to $152.1 million, or $1.41 per diluted share for the 2013 third quarter.
Analysts polled by Thomson Reuters were expecting adjusted earnings per share of $1.51 million for the quarter.
Herbalife's worldwide net sales grew by 4% to $1.26 billion, however analysts were expecting $1.32 billion for the quarter.
Additionally, Herbalife cut its full year 2014 adjusted earnings forecast to a range of $5.80 to $5.90 per diluted share. Analysts have estimated for earnings of $6.26 per share for the year.
"Third quarter 2014 reported net income was negatively impacted by $139.5 million in pre-tax charges, or $0.97 per diluted share after tax, related to the remeasurement of Venezuelan Bolivar denominated assets and liabilities at the SICAD I and SICAD II rates, and $17.5 million in pre-tax charges, or $0.13 per diluted share after tax related to a legal reserve," the company said.
Separately, TheStreet Ratings team rates HERBALIFE LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERBALIFE LTD (HLF) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: HLF Ratings ReportHLF data by YCharts