Herbalife Ltd. (NYSE: HLF) shares soared 16.01% in after-hours trading on February 19, 2025, following the company's strong fourth quarter 2024 earnings results and 2025 guidance, along with the appointment of a new Chief Executive Officer.

The nutritional supplements company reported Q4 net sales of $1.2 billion, down 0.6% year-over-year but at the high end of guidance. On a constant currency basis, net sales increased 2.7% compared to the prior year period. Adjusted diluted earnings per share came in at $0.36, beating analysts' consensus estimate of $0.22 by a wide margin.

Herbalife's adjusted EBITDA for the quarter was $150.0 million, exceeding the company's guidance, with an adjusted EBITDA margin of 12.4%, up 340 basis points versus Q4 2023. The company 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 President Stephan Gratziani being appointed as the new Chief Executive Officer, 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.

The strong earnings performance, leadership changes, and upbeat outlook appear to have fueled investor enthusiasm, resulting in Herbalife's stock price surge in extended trading hours.