Why Shares of The Beauty Health Company Are Soaring Tuesday
Shares of The Beauty Health Company (NASDAQ: SKIN) were up more than 25% as of 12:25 p.m. on Tuesday after the cosmetics company announced a business reorganization and a stock repurchase plan and reiterated yearly guidance. The stock is down more than 43% so far this year.
Beauty Health focuses on skin health products. Its lead product is Hydrafacial, a patented skin treatment that has microdermabrasion qualities. On Tuesday, the company said that it expected to see more than $20 million in cost savings from a reorganization plan. The company also reiterated that it expects to have between $600 million and $700 million in revenue in 2025, along with an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of between 25% to 30% by 2025.
The company said its reorganization will come in two steps, the first designed to find $20 million in annualized cost saving during the first quarter of 2024 by streamlining the company's product offerings, modernizing processes, and using initiatives to increase manufacturing efficiencies. The second phase is designed to find $15 million in annualized cost savings during the second quarter of 2024 by improving manufacturing operations.
Source Fool.com
