Today's most eagerly anticipated earnings release, that of Herbalife, also known as the focal point of the most entertaining feud of 2013 - that between Bill Ackman and Carl Icahn - were just released, [5]and they are a blowout.
- HERBALIFE LTD. 2Q ADJ. EPS $1.41, EST. $1.18
- HERBALIFE 2Q REV. $1.22B, EST. $1.16B
- HERBALIFE OPERATING CASH FLOW $214 MILLION
- HERBALIFE SEES YR ADJ. EPS $4.83-$4.95, EST. $4.78
- SECOND QUARTER VOLUME GROWTH +14%
- HERBALIFE 2Q HAS 2C EXPENSES ON REAUDIT DUE TO KPMG RESIGNATION
- the always amusing: HERBALIFE 2Q HAS EXPENSES 7C-SHR ON 'ATTACKS OF CO BUSINESS'
The biggest news as always was not reported: it was the most recent short interest in the name. At 36% it means much more pain in store for shorts.
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But the punchline is that Herbalife just announced a $0.30 dividend per share: a dividend which will to a big extent come straight out of Bill Ackman's pocket.
Stock soaring after hours as the epic squeeze we predicted in December 2012 continues. [7]
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The only question now remains is how generous are the repo desks for Bill Ackman's Prime Brokers and when will Bill finally get the tap on the shoulder and be forced to cover his 20mm short.
No matter what happens though, one person is happy. This guy.
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