Dell, Herbalife shares edge up after hours

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 DELL �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.

Reuters Enlarge Image 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 HLF �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.

Click to Play 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 DMD 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.

Click to Play 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 SPX � rose 0.7% to 1,530.94, building on a seventh straight week of gains. The Dow Jones Industrial Average DJIA �gained 54 points, or 0.4%, to 14,035.57 and the Nasdaq Composite Index COMP �advanced 0.7% to 3,213.59.