Herbalife soundly beat Wall Street expectations Thursday, and provided an update on a probe of the company by the Federal Trade Commission.
The nutrition company reported earnings per share of $1.19 on $1.1 billion in revenue. Analysts had expected earnings of 94 cents per share on $1.07 billion in revenue, according to a consensus estimate from Thomson Reuters.
Herbalife noted in its annual report that it's in discussions with the FTC to resolve an investigation into concerns over federal law compliance involving advertising, marketing and sale of business opportunities.
The company also provided weak guidance and now expects earnings in a range of $4.05 to $4.50 per share for fiscal 2016. The company had previously forecast $4.35 to $4.75 per share. It explained that the new guidance accounts for a currency headwind of 80 cents per share.
Michael Johnson, Herbalife chairman and CEO, said in a statement that the company had rolled out important changes to its marketing strategy.
"We successfully navigated the associated short-term challenges, believing that we were making the right changes at the right time, and despite ongoing currency and macroeconomic challenges, we finished the year returning to growth," he said.
The supplement company's feud with hedge fund billionaire Bill Ackman reached a stalemate in late January, The Wall Street Journal reported. Ackman, who has held a short interest in Herbalife shares, has accused the company of having a fraudulent business model, while Herbalife alleges that Ackman manipulated its stock price.
Investigators failed to find enough evidence to file criminal charges on either front, the Journal's report said.
Herbalife shares have fallen nearly 15 percent this year, down more than broader markets, but they have climbed more than 30 percent in the last 12 months.