Herbalife Raises the Sword of Damocles Over Bill Ackman’s Head With Huge Earnings Beat

Just when you thought Billy was back, crushing the month of April by 10%, reducing its losses to -18% for the year, Herbalife happens.

• First quarter 2016 adjusted¹ EPS of $1.36 per diluted share increased 5% compared to $1.29 per diluted share for the comparable prior year quarter. Reported EPS increased 22% to $1.12 per diluted share compared to $0.92 per diluted share for the comparable prior year quarter.
• First quarter 2016 reported net sales of $1.1 billion increased 1% and 11%, on an as reported and constant currency basis, respectively, compared to the prior year period.

• Volume points increased 4% in the first quarter 2016 compared to the first quarter 2015.
• Raises FY ’16 adjusted diluted EPS guidance to a range of $4.40 to $4.75; up from the previous range of $4.05 to $4.50

What’s interesting about the Herbalife quarter is their wanton success in China, ripping off the con-artists, who then go and rip off a sundry of people for personal profit. The whole pyramid scheme business plan is perfectly tailored for China, born liars, thieves, and criminals of the first magnitude.

“We’ve started the year by exceeding EPS guidance on both the top and bottom line and by returning to reported net sales growth, year over year, the first time in 5 quarters. Our updated guidance reflects the confidence that we have for the remainder of the year as we continue to hold the line on expenses while investing prudently towards the future.”

Johnson continued, “Our Members, through their growing and sustainable businesses, continue to engage with their customers on a much more personal level and are perfectly situated to be a leading part of the solution for many global health challenges facing the world today.”

HLF is higher by 12% in the after-hours, perplexing and depressing all of the lads swinging low at Pershing Square, whose billion dollar short position just got a little deeper.