UPDATE 2-Herbalife forecast above Street view, shares rise
* Q2 EPS $0.88 vs est EPS $0.75
* Q2 rev $879.7 mlv vs est $829.4 mln
* Sees Q3 EPS $0.71-$0.76 vs est $0.69
* Sees FY11 EPS $2.97-$3.07 vs est $2.91 (Adds details, background)
Aug 1 (Reuters) - Herbalife Ltd forecast the current quarter and full year above market expectations as it benefits from increasing obesity fears, sending the dietary supplements distributor's shares up 10 percent after the bell.
Herbalife and other weight management companies such as Weight Watchers have been benefiting from global concerns of obesity.
Last week, smaller player Nutrisystem posted a market-beating second-quarter profit helped by cost cuts. Medifast and Weight Watchers will report later this week.
Herbalife, which sells weight control products like energy drinks and nutritional supplements in over 70 countries, now expects to earn 71-76 cents a share for July-September. Analysts on average were expecting it to earn 69 cents a share, according to Thomson Reuters I/B/E/S.
For 2011, the company expects to earn $2.97-$3.07 per share, while analysts were expecting it to earn $2.91 per share.
Herbalife's quarterly results also beat Wall Street expectations on higher sales across all markets, particularly in emerging markets such as Asia Pacific and Mexico.
The company's revenue from Asia pacific rose about 38 percent to $237.1 million, while Mexico revenues rose about 41 percent to $113.9 million.
Earnings for the company rose to 88 cents a share for the quarter, from 65 cents a share, a year ago. Analysts on average had expected the company to earn 75 cents per share.
Revenue rose 28 percent to $879.7 million, while analysts expected revenue of $829.4 million.
Shares of the Los Angeles-based company were trading up 9 percent at $60.55 after the bell. They had closed at $55.54 on Monday on the New York Stock Exchange. (Reporting by Arpita Mukherjee in Bangalore; Editing by Don Sebastian)
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