Herbalife stock bounces back even as earnings and revenue continue to decline

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Herbalife Nutrition Ltd. shares gained in after-hours trading Tuesday, after the company reported a strong earnings beat in its first quarter with a former...

Herbalife Nutrition Ltd. HLF shares gained in after-hours trading Tuesday, after the company reported a strong earnings beat in its first quarter with a former chief executive back in charge. Herbalife reported fourth-quarter net income of $54.4 million, or 55 cents a share, on net sales of $1.18 billion, down from $1.32 billion in the holiday season a year ago.

Adjusted earnings also declined from last year, to 53 cents a share from 57 cents a share, due to a charge from a loss for extinguishment of debt. Both easily beat analysts’ expectations after prolonged struggles for the company during the COVID-19 pandemic, though: Analysts on average were projecting adjusted earnings of 34 cents a share on sales of $1.13 billion, according to FactSet.

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