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.