By Dhirendra Tripathi
Investing.com – Herbalife Nutrition stock (NYSE:) plummeted 18% as the company cut its sales and earnings forecast for the ongoing quarter as well as that of the full financial year.
The company blamed lower-than-expected levels of activity by its independent distributors for its decision to cut the guidance.
“Uncertainty in global markets, fueled by the extended period of the pandemic, has brought about unique challenges in predicting behavior in the channel,” Herbalife Nutrition Chief Executive Officer John Agwunobi said in a note.
The company’s revised guidance calls for a quarterly net sales decline of 6.5% to 3.5%, lowering the midpoint by 700 basis points compared to the outlook given just last month. Adjusted earnings per share for the current quarter is seen eroding by 5 cents from the previous forecast to $1.10 at midpoint.
The nutrition company expects full-year net sales to grow in the range of 4.5% to 8.5% compared to its previous forecast of 8.5% to 12.5% growth.
Adjusted earnings per share is now seen around $4.75 at midpoint, lower by 15 cents from the previous forecast.
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