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Dell, Herbalife shares edge up after hours - After Hours

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Published on Tuesday, 19 February 2013 16:43

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By This e-mail address is being protected from spambots. You need JavaScript enabled to view it. , MarketWatch LOS ANGELES (MarketWatch) — Shares of Dell Inc. and Herbalife Ltd. edged higher Tuesday evening after the PC maker and the wellness-products seller posted quarterly results that were ahead of Wall Street’s expectations. Meanwhile, shares of Demand Media Inc. jumped after the company said it planned to explore splitting itself into two publicly traded entities. Dell /quotes/zigman/27952/quotes/nls/dell DELL -0.04% shares were up 0.3% at $13.84, but off higher levels, following the company’s report of adjusted fourth-quarter earnings of 40 cents a share. Analysts polled by FactSet had expected 39 cents a share. Revenue fell 11% from the year-ago period to $14.3 billion, and Wall Street had projected sales of $14.1 billion for the most recent period. Dell, Herbalife shares edge up after hours - After Hours

Dell, Herbalife shares edge up after hours - After Hours

Reuters

Dell CEO and founder Michael Dell

Net earnings for the fourth quarter fell to $530 million, or 30 cents a share, from $764 million, or 43 cents a share, in the year-ago quarter.

Dell was trading above the $13.65 a share offered in buyout bid led by founder and CEO Michael Dell. Some shareholders have criticized the offer, saying it’s too low. See: Dell reports lower profit, but beats expectations.

Herbalife /quotes/zigman/361145/quotes/nls/hlf HLF +2.58% shares gained 0.2% at $39.80, but had been up by 2.5% in the wake of quarterly results that beat analyst estimates as well an improved forecast for 2013.

For its fourth quarter, Herbalife made $117.8 million, or $1.05 a share, up from $105.4 million, or 86 cents a share, in the same period a year ago. Wall Street had expected $1.03 a share. Sales for the most recent quarter rose 20% to $1.1 billion, higher than the estimated $1.05 billion.

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Dell earnings leave buyout questions unanswered

Dell posts results that beat Wall Street's expectations, even as the Texas company reports a double-digit drop in revenue from its PC and mobility segments. MarketWatch's Dan Gallagher reports. (Photo: Getty Images)

For 2013, Herbalife said it now expects to earn between $4.45 and $4.65 a share, on sales growth of 12% to 14% in 2013. Its had previously expected earnings of $4.40 to $4.55 a share on sales growth of 10% to 12%.

Herbalife also said the U.S. securities regulator has requested more information about its business. Herbalife is trying to fend off accusations from hedge-fund activist Bill Ackman that its business is a pyramid scheme. Herbalife said it plans to spend $10 million to $20 million this year to defend itself from what it believes is inaccurate and misleading information.

Meanwhile, hedge-fund heavyweight Carl Icahn last week disclosed a 13% stake in Herbalife. More on Herbalife's results, 2013 outlook.

Demand Media /quotes/zigman/3620702/quotes/nls/dmd DMD -0.88% shares rallied 15% to $9 after the Internet media company said its board has approved a plan that could result in the company splitting into two publicly traded entities.

Demand Media said the plan under consideration would create a pure-play media company involved in content creation and Web properties, and a second company that provides domain-registry and other services. The separation would be completed within the next nine to 12 months, if approved. See: Demand Media gets lift on split plan, earnings.

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Google shares hit high of $800

Google has been developing plans to launch retail stores in the U.S. Plus shares hit a new $800 high. Photo: Getty Images.

In trading ahead of the evening session, the S&P 500 index closed at a five-year high, with M&A activity in the spotlight as retailers Office Depot Inc. and OfficeMax Inc. consider a deal to merge. See: U.S. stocks rise on hopes of corporate deals.

The S&P 500 index /quotes/zigman/3870025 SPX +0.73% rose 0.7% to 1,530.94, building on a seventh straight week of gains. The Dow Jones Industrial Average /quotes/zigman/627449 DJIA +0.39% gained 54 points, or 0.4%, to 14,035.57 and the Nasdaq Composite Index /quotes/zigman/12633936 COMP +0.68% advanced 0.7% to 3,213.59.