By Investing.com Staff
Herbalife Nutrition (NYSE:HLF) shares are little changed following third-quarter results, withdrawn guidance, and news that former Chairman and CEO, Michael O. Johnson, is back as Chairman and interim CEO. A new CEO is expected to be announced next year.
Herbalife reported an adjusted EPS of $0.91, topping the consensus of $0.80. Sales fell 9.5% to $1.3 billion, in line with the consensus. The company said due to rapidly shifting macroeconomic sentiment and backdrop, as well as increased volatility in the marketplace, the Company is withdrawing FY 2022 guidance.
While results were mixed, analysts are bullish on Johnson's return to lead the company.
Johnson was responsible for nearly quadrupling the business in his nearly 20 years at the helm, B. Riley analysts highlight today. However, he also brought controversy which was witnessed in Bill Ackman's famous short attack and short squeeze in the stock about a decade ago.
The analysts added that Johnson's "passionate re-focus on marketing and sales growth will be a key driver of future metric inflection. Further, we anticipate a period of mentoring by Johnson of the TBD permanent CEO."
The analysts reiterated a Buy rating on the stock while cutting his price target to $31.