Herbalife Nutrition Ltd. shares fell in the extended session Monday after the nutrition products company cut its outlook after providing one a little over a month ago because of lingering pandemic slowness.
Herbalife
HLF,
shares dropped 8% after hours, following a 1.4% rise to close the regular session at $54.24. Shares have gained 11% over the past 12 months, compared with a 34% rise in the S&P 500 index
SPX,
The company expects adjusted earnings of $1 to $1.20 a share for the third quarter, and $4.55 to $4.95 a share for the year, because of “lower than expected levels of activity amongst its independent distributors.”
Back in August, Herbalife had forecast third-quarter earnings of $1.05 to $1.25 a share, and full-year earnings of $4.70 to $5.10 a share. Based on that, analysts surveyed by FactSet had forecast $1.17 a share for the third quarter and $4.99 a share for the year.
“We are on track for another record sales year with a sustained growth trajectory and significant cash generation, positioning us to continue to benefit from the fundamental tailwinds driving the nutrition industry globally and the strong demand for our science-based products, as consumers continue to appreciate the value of good nutrition,” said John Agwunobi, Herbalife chief executive, in a statement.
“Yet, uncertainty in global markets, fueled by the extended period of the pandemic, has brought about unique challenges in predicting behavior in the channel,” he said.
This post was originally published on Market Watch
