Shares of Herbalife Ltd. increased by as much as 17 percent on Tuesday, despite recent complications with federal investigations and sluggish growth.
Prices of Herbalife stock went up to $46.98, with earnings per share for fiscal year 2015 priced at $4.60, Bloomberg reports. Earlier estimates suggested that the company's earnings per share would remain at an $4.24 average.
"Our performance this quarter was above our expectations and has resulted in us increasing our full year 2015 guidance," Chairman and Executive Officer Michael Johnson said in a statement, Bloomberg reports.
Herbalife has been subject to federal investigations following claims of allegedly using a pyramid scheme in its internal structure. Hedge fund manager Bill Ackman has accused the company of doing and has pressured the Federal Trade Commission to adjust its model.
In terms of sluggish growth, Herbalife's revenue has declined by 12 percent to $1.11 billion, Bloomberg also reports. Nonetheless, company officials have assured investors that the company is moving upward.
"As reflected in our record sales leader retention results, we remain confident that we are building a stable foundation for volume and sales growth, driving long-term shareholder value creation, and providing an even better experience for our millions of Members and our customers throughout the world," Johnson said, Business Wire reports.
Herbalife was founded in 1980 by Mark Hughes.
