Herbalife Misses Estimates For First Time Since ‘08

Jul 29 2014 | 9:23am ET

Pershing Square Capital Management’s William Ackman couldn’t put a dent in Herbalife’s share price, but the end of the company’s earnings streak did.

Herbalife said yesterday that it missed analysts’ estimates for the first time in 21 quarters, or since the fourth quarter of 2008. That sent shares—which rallied 25% following Ackman’s anti-Herbalife presentation last week—down 10%.

Ackman accuses Herbalife of being a pyramid scheme, but the company’s shares have risen 80% since he announced his $1 billion short in December 2012. Herbalife shares are down 14% this year after the after-hours decline.

The Los Angeles-based company still faces several government investigations. It recently hired Alan Hoffman, the former chief of staff to Vice President Joseph Biden, to handle its regulatory affairs. Hoffman, who most recently led PepsiCo’s lobbying effort, is the former boss of Federal Trade Commission member Terrell McSweeney. The FTC is among the agencies probing Herbalife.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR