Why Are Herbalife (HLF) Shares Soaring Today

Core Insights - Herbalife's shares increased by 8.3% following the release of third-quarter financial results that exceeded analyst expectations [1] Financial Performance - Herbalife reported net sales of $1.27 billion, reflecting a 2.7% year-over-year increase, slightly surpassing revenue forecasts [2] - Adjusted earnings per share reached $0.50, exceeding analyst predictions by 8.4% [2] - Adjusted EBITDA was $184.2 million, beating consensus estimates by over 16% [2] - Free cash flow margin improved to 9.3% from 5.8% in the same quarter last year, indicating enhanced cash generation [2] Market Reaction - The stock has shown significant volatility, with 29 moves greater than 5% in the past year, suggesting that the market views the recent news as significant but not fundamentally altering its perception of the company [4] - The largest previous stock movement occurred nine months ago, with a 44.6% increase following strong fourth-quarter results [5] Future Outlook - Revenue guidance for the next quarter is projected to decline between 5.5% and 1.5% year-over-year, raising concerns about the company's ability to maintain margins and profits [5] - Herbalife's stock is up 34.8% year-to-date but remains 16.9% below its 52-week high of $10.83 from July 2025 [6] - An investment of $1,000 in Herbalife shares five years ago would now be worth $185.71 [6] Leadership Change - Stephan Gratziani has been appointed as the new CEO, succeeding Michael Johnson, who will take on the role of Executive Chairman [5]