Shares in Herbalife reached a 52-week high of $66.23 on Tuesday, following Monday’s announcement of double-digit sales growth in the second quarter. The global nutrition company reported a 29 percent jump in profits over the prior year, marking Herbalife’s 18th consecutive earnings beat.
In addition to posting record second-quarter profits, Herbalife raised its full-year earnings forecast from $4.83 to $4.95 per share. The company set its third-quarter earnings forecast at $1.09 to $1.13—slightly more conservative than the $1.16 projected by analysts in a recent Thomson Reuters poll. Through Monday’s close, Herbalife stock had risen 84 percent in 2013.
The boost comes as Herbalife continues to refute investor Bill Ackman’s critiques of the company’s business model. Since launching his billion-dollar short sell on Herbalife in late 2012, Ackman has refused to drop his case against the company despite his increasingly unfavorable position on Herbalife stock.
According to CNN Money, Herbalife shared in a Tuesday conference call with analysts that it will continue to strive for transparency by distinguishing between “members,” or customers seeking to buy Herbalife’s products at a discounted distributor price, and “distributors” actively marketing the products.
Herbalife President Des Walsh told Reuters that the company signed up a record number of 80,000 new distributors in the U.S. in the second quarter. “Now, more people who are aware of what’s happening have taken time to understand our business, and with that comes an acknowledgment of the legitimacy of our products,” Walsh said.