Herbalife (HLF) stock surged over 6% in pre-market trading on Tuesday after the company reported better-than-expected third quarter earnings and raised its full-year 2024 guidance.

For the quarter ended September 30, the nutrition and weight management products company reported adjusted earnings of $0.57 per share, beating the consensus estimate of $0.35. Revenue of $1.24 billion was in line with analysts' expectations.

Herbalife attributed the solid performance to its progress in rebuilding its distributor base. The company reported a 14% year-over-year increase in new distributors joining worldwide, marking the second consecutive quarter of growth after 12 quarters of declines.

The company also highlighted initiatives like the newly launched Diamond Development Mastermind program, designed to better train and support its top distributor leaders. This is expected to drive higher productivity and sales growth going forward.

Additionally, Herbalife raised its full-year 2024 adjusted EBITDA guidance to a range of $590 million to $620 million, up from its previous outlook. The company is also focused on reducing debt, paying down $85 million in the third quarter and lowering its total leverage ratio to 3.3x.

The strong earnings results, improving distributor metrics, raised guidance, and debt reduction efforts appear to have fueled investor optimism around Herbalife's turnaround, driving the significant pre-market stock rally.