Herbalife Ltd. (NYSE:HLF) stock was lower on the news that the Securities and Exchange Commission (SEC) is issuing a probe.
The agency is investigating the company, requesting documents and other information related to anti-corruption laws in China. Herbalife said it is issuing its own investigation into the matter.
The company added that it is discussing the SEC’s investigation with the Department of Justice and it cannot predict the eventual outcome of the situation. However, this isn’t all that is lowering Herbalife stock Friday.
The fiscal fourth-quarter report for the company is expected to be released soon, and the company has issued an update on the matter. Earnings will be on the lower end of projections.
The nutritional supplement company revealed in a release that fourth-quarter volume will be between a drop of 1.5% and a rise of 2.5%. It will likely be closer to the first figure.
Net sales for the three-month period are expected to suffer a decline between 4% and 6% year-over-year. Currency changes have also been affecting the company, impacting net sales.
Herbalife reduced its fiscal 2017 forecast due to the fact that the U.S. dollar has strengthened.
HLF shares fell 0.3% Friday. It has still been a good year for the company as shares have surged more than 10.7% year-to-date. The share has only risen 15.5% over the last 12 months.
The company has a market capitalization of $4.94 billion.
