Herbalife posted quarterly earnings and revenue that fell short of Wall Street estimates, sending shares sharply lower in pre-market trading Tuesday.
This is the first time since 2008 that Herbalife missed estimates.
The company posted earnings of $1.55 a share, excluding one-time items, on sales of $1.31 billion, versus estimates for $1.56 a share on revenue of $1.36 billion, according to a consensus estimate from Thomson Reuters.
Shares tumbled more than 12 percent in extended-hours trading. Click here to see how shares are trading.
The company raised its earnings expectations for the fiscal full-year 2014 to between $6.17 a share and $6.32 a share, but the revised guidance was still lower than Wall Street's projections for $6.30 a share.
"Herbalife has once again delivered strong results in sales and profitability while demonstrating our continued ability to enhance our earnings per share," said Michael Johnson, Herbalife's chairman and CEO in a press release. "Our performance is a testament to the enthusiasm our millions of consumers and members have for our products."
Activist investor Bill Ackman of Pershing Square Capital Management continued his campaign against the company last week, delivering a presentation he said would be a "death blow" to the direct selling company. Ackman has called the company a "pyramid scheme" and has a short position on the stock totaling roughly $1 billion.
Herbalife shares fell slightly before and during Ackman's emotional call to "shut the company down" last Tuesday, but the drop was short-lived. Shares then spiked 25 percent the following day—the biggest jump in the stock's history.
Other investors have disagreed with Ackman and bought up chunks of its shares. One of the company's defenders is Carl Icahn, whose disagreement with Ackman over Herbalife's business contributed to a feud between the two investors and a shouting match on "Fast Money Halftime" in January 2013. Ackman and Icahn reconciled, but both investors still hold contrary positions on the stock.
Herbalife's management deny the company is a pyramid scheme and state its business practices are sound and legal.
—By CNBC.com staff