Herbalife raises 2013 forecast amid clash of fund titans
February 20, 2013 10:07 AM EST
The forecast, however, excludes $10 million (6.4 million pounds) to $20 million in legal and other costs related to Herbalife's response to Ackman's allegations that the company was "a house of cards".
Ackman, who has taken a high-profile short position on the stock, argued that the company is an unsustainable scheme because distributors earn more than 10 times as much from recruitment as they do by selling its products.
Icahn, however, revealed a 13 percent ownership stake last week and a desire to explore strategic options for Herbalife.
The 32-year-old Herbalife, which sells products through a network of independent distributors, raised its earnings forecast to $4.45 to $4.65 per share for the full year, from $4.40 to $4.55 per share. Analysts on average were expecting $4.64 per share.
The forecast also excluded the impact of the devaluation of the Venezuelan bolivar.
Shares of the company rose marginally to $39.81 in trading after the bell on Tuesday. They closed at $39.74 on the New York Stock Exchange.
The company's fourth-quarter income rose to $117.8 million, or $1.05 per share, from $105.4 million, or 86 cents per share, a year earlier.
Revenue rose about 20 percent to $1.06 billion, slightly above Wall Street's expectations of $1.03 billion.
Sales in Asia Pacific, which is the largest revenue generator for Herbalife, rose 19 percent to $295.2 million in the quarter.
(Reporting by Arpita Mukherjee and Siddharth Cavale in Bangalore; Editing by Don Sebastian)
Most Popular Slideshows
- In Photos, Typhoon Rammasun Blasts the Philippines
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air