Shares of the Beauty Health Company (SKIN) surged more than 19% in premarket trading Wednesday after the personal care product maker reported better-than-expected fiscal Q4 revenue.
Full-year EBITDA guidance also exceeded expectations.
For the Q4, Beauty Health reported a loss per share of $0.07, in line with consensus estimates. Revenue was reported at $96.8 million, significantly higher than the anticipated $87.22 million by analysts.
The company’s quarterly margin stood at 54.6%, a decrease from the previous year's 73.6%.
Looking ahead, Beauty Health has provided guidance for the first quarter of 2024, projecting revenues to be in the range of $77 million to $83 million. This forecast falls short of the market consensus, which had expected revenues to reach around $85.5 million.
For the full year, the company expects its adjusted EBITDA to surpass $40 million, which is notably higher than the estimated $31.6 million by analysts.
Commenting on the report, TD Cowen analysts said although the FQ1 2024 guidance was below consensus, expectations heading into the print “were modest given the leadership change and disruptions with Syndeo.”
“We continue to believe SKIN's turnaround will likely take more time with near-term headwinds persisting in FY24. Syndeo 3.0 is better than prior versions but still minor issues exist that need to be addressed,” they added.
“We remain on the sidelines but raise our PT to $4 based on ~2x FY2 EV/ Sales.”