Net income for quarter that ended September 30 rose to $58.1 million, or 89 cents per share, from $48.3 million, or 67 cents per share, in the prior year.
"In these turbulent economic times, we believe we're in a fortunate position - at the intersection of health and wealth," said chairman and CEO Michael O. Johnson of the weight-loss supplement distributor.
But a stronger dollar against major world currencies has started to impact sales and profits for the company, spilling over into fourth quarter earnings. The LA firm projected a drop in sales in the fourth quarter between 6.0 percent and 7.0 percent and earnings per share are estimated between 65 cents and 70 cents. According to analysts, Wall Street was looking for 87 cents per share.
Sales performance for the quarter took a lift from decent growth, some double-digit, in international markets. Herbalife cites Brazil, which saw net sales rising by 47 per cent, China by 87 per cent, as well as Italy (27 per cent), Taiwan (20 per cent) and South Korea (up 30 per cent).
But sales fell overall by 5.7 per cent for the European, Middle East and Africa (EMEA) region with the firm reporting net sales of $135.4 million for the third quarter of 2008.
While Italian, French and Russian markets for the region all rose, Spain, Germany and Portugal all tumbled, Portugal by as much as 50 per cent, and Spain by 27 per cent.
Fourth quarter
The LA firm projected a drop in sales in the fourth quarter between 6 and 7 percent and earnings per share are estimated between 65 cents and 70 cents. According to Forbes, Wall Street was looking for 87 cents per share.
The disappointing forecast sent Herbalife sales sliding by over 22 percent in midday trading on Tuesday on the New York Stock Exchange.