Herbalife has spent much of 2013 defending its business model against hedge fund manager Bill Ackman’s pyramid accusations. In a Dec. 20 presentation, Ackman denounced the nutritional supplements seller and stated a $0 target price for Herbalife stock, simultaneously shorting the company 20 million shares. In spite of Ackman’s continued opposition, Herbalife’s first quarter earnings report surpassed analysts’ predictions and its own forecasts with $1.1 billion in revenue, a 17 percent year-over-year increase.
The report also follows closely upon the resignation of Herbalife auditing firm KPMG following accusations of insider trading by the firm’s senior partners. Herbalife’s earnings equal $1.10 per share, beating the $1.03 to $1.07 per share forecasted by the company and marking the seventeenth consecutive quarter Herbalife has posted earnings reports surpassing analysts’ estimates.
Read the full Los Angeles Times story here.