By Beauty Health shares experienced a significant decline before markets opened on Tuesday as the company announced a lowered guidance for the year, as well as a widened loss and lower-than-expected sales in the third quarter.
Share Plummet Before Market Opening
At 07:08 a.m. ET, shares were down by almost 50% in premarket trading, reaching $1.96.
Increase in Loss and Disappointing Sales
Late on Monday, the skin-health company reported a loss of $73.8 million, or 56 cents a share, in comparison to a loss of $100,000, or 3 cents a share, from the previous year. This came as a surprise to analysts who were expecting a rise to 5 cents, according to FactSet.
While revenue did increase from $88.8 million to $97.4 million, it fell short of analyst expectations of $116.2 million.
Factors Contributing to the Quarter’s Performance
Beauty Health attributed the disappointing results to lower-than-expected U.S. revenue and $63.1 million in restructuring charges due to device upgrades for their flagship hydrafacial brand, Syndeo devices.
Revised Guidance for Net Sales
The company is revising its net sales guidance for 2023, now estimating a range of $385 million to $400 million. This figure is lower than the initial expectation of $424.6 million by analysts.
Adjusted Earnings and Long-Term Outlook
Additionally, Beauty Health has set its adjusted earnings before interest, taxes, depreciation, and amortization margin guidance between 5% and 6%. The company has also decided to suspend its long-term 2025 financial outlook.
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