Dow gives back 0.2%. Watch these stock charts: NKE, S, CREE >>> READ MORE

HLF: Herbalife Beats Street, Cuts Dividend

It also raised its profit outlook for the full year


On Monday, Herbalife (HLF) posted better-than-expected quarterly earnings and suspended its dividend in favor of more share buybacks. HLF stock gained almost 2% on the news.

herbalifeHLF stock rose after Herbalife reported adjusted net first-quarter earnings of $1.50 per share, easily beating Wall Street, which as looking for earnings of about $1.30 per share, Reuters noted.

Earnings Recap: 4 Stocks Beating Expectations
Earnings Recap: 4 Stocks Beating Expectations

Quarterly sales volumes moved up 9%. HLF raised its profit outlook for the full-year from prior guidance of between $5.85 and $6.05 per share, to between $6.10 and $6.30 per share.

HLF also said it would halt quarterly dividend payments in order to repurchase more HLF shares. The dividend suspension was hailed by activist investor Carl Icahn, who took to Twitter (TWTR) to call the decision a “great move.” Icahn holds a significant stake in Herbalife.

In March, the Federal Trade Commission said it had launched an investigation into Herbalife. The company has been accused of being a pyramid scheme by at least one prominent investor.

On Monday, HLF stock closed at $58.85 per share.

More Stocks on the Move:

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC