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Herbalife Surges 44% on Q4 Earnings Beat and CEO Transition
Feb 20, 2025 5:39 PM - Davit Kirakosyan
Image credit: FMP
Herbalife (NYSE:HLF) soared 44% intra-day today after reporting stronger-than-expected fourth-quarter earnings and announcing a leadership transition with a new CEO set to take the helm.
The nutrition company posted adjusted earnings per share of $0.36, significantly exceeding analyst projections of $0.11. Revenue reached $1.2 billion, slightly above the $1.19 billion consensus forecast.
Despite a 0.6% year-over-year decline in net sales, the company saw a 2.7% increase on a constant currency basis, with foreign exchange headwinds accounting for a 330-basis-point drag on reported sales. Profitability improved notably, with adjusted EBITDA margin expanding 340 basis points to 12.4% in Q4, while full-year 2024 EBITDA margin rose 140 basis points to 12.7%.
Adding to investor optimism, Herbalife announced that Stephan Gratziani will assume the CEO role on May 1, as current CEO Michael Johnson transitions to Executive Chairman. Johnson highlighted the company’s positive momentum, citing three consecutive quarters of distributor growth and strengthening financial performance.
Looking ahead, Herbalife expects Q1 2025 net sales growth between 0% and 4% on a constant currency basis, with full-year sales projected to grow between 1% and 7%. With leadership changes, expanding margins, and steady distributor growth, the company appears poised for a stronger 2025.
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