Herbalife Ltd. (HLF) shares skyrocketed over 19% in the after-hours trading on Wednesday, following the company's impressive fourth-quarter 2024 financial results and positive outlook for 2025. The stock surge was further fueled by the announcement of a leadership transition, with Stephan Gratziani being appointed as the new Chief Executive Officer (CEO) effective May 1, 2025.

In the fourth quarter, Herbalife reported net sales of $1.2 billion, down 0.6% year-over-year, but at the high end of the company's guidance range. On a constant currency basis, net sales increased by 2.7% compared to the prior year period. Adjusted diluted earnings per share (EPS) came in at $0.36, beating analysts' consensus estimate of $0.22 by a wide margin.

The company's adjusted EBITDA for the quarter was $150.0 million, exceeding guidance, with an adjusted EBITDA margin of 12.4%, up 340 basis points versus Q4 2023. Herbalife attributed the improved profitability to pricing benefits, manufacturing efficiencies, and lower inventory write-downs.

For the full year 2024, Herbalife reported net sales of $4.99 billion, representing a 1.2% increase on a constant currency basis. Adjusted diluted EPS was $1.96, and adjusted EBITDA reached $634.8 million, with a margin of 12.7%, up 140 basis points compared to 2023.

In a separate announcement, Herbalife revealed a leadership transition, with current President Stephan Gratziani being appointed as the new CEO, effective May 1, 2025. Michael Johnson, the current CEO and Chairman, will transition to the role of Executive Chairman.

Looking ahead, Herbalife provided guidance for the first quarter of 2025, projecting revenue to decline between 5.5% and 1.5% year-over-year, with adjusted EBITDA ranging from $140 million to $150 million. For the full year 2025, the company expects revenue to be between -3% and +3% compared to 2024, with adjusted EBITDA guidance of $600 million to $640 million.