Lower costs give Herbalife a big lift

Herbalife Ltd. said it posted an 83% increase in third-quarter profit, helped by lower interest costs and higher operating margins, and forecast fourth-quarter earnings above Wall Street estimates.

The company, which sells weight-loss and nutritional supplements, posted third-quarter net income of $48.3 million, or 67 cents a share, compared with $26.5 million, or 36 cents, a year earlier. Sales rose 11% to $529.5 million.

Analysts on average were expecting earnings of 64 cents a share on revenue of $522.7 million, according to Reuters Estimates.

Herbalife forecast fourth-quarter earnings of 72 cents to 74 cents a share. Analysts on average were expecting 70 cents a share.

Separately, Herbalife said the Securities and Exchange Commission was investigating share trading by a “former mid-level employee.” Investigators from the SEC’s Los Angeles office also requested documents about the use of Herbalife products by distributors, the company said in a regulatory filing.