Emma Asma Cornwall
1
All posts from Emma Asma Cornwall
Emma Asma Cornwall in Gainers & Losers,

Herbalife shares skyrocket, what next?

Shares of Herbalife Ltd. surged 11% today after the nutritional-products company turned quarterly results that beat analysts' expectations. 

Herbalife reported its first-quarter earnings rose to $95.8 million, or $1.12 a share, from $78.2 million, or 92 cents a share, a year earlier. On an adjusted basis, the company would have earned $1.36 a share. Revenue grew 1% to $1.1 billion. Analysts surveyed by FactSet had projected earnings of $1.09 a share on revenue of $1.07 billion. 

Herbalife projected second-quarter adjusted earnings per share of $1.10 to $1.20 and revenue growth of flat to up 3%. Wall Street is looking for EPS of $1.16 on $1.19 billion in revenue. Meanwhile, the company's talks with the Federal Trade Commission is in advanced stages and it may pay $200 million to reach a settlement, CNBC reported Thursday. 

Even though I don't really like Herbalife's products and don't see a long-term perspective in the company, I must admit that from technical point of view everything looks constructive - a big bullish flag and a huge jump afterwards, which can be sustained...