Why the Beauty Health Company Tanked as Much as 16.3% on Tuesday
Shares of The Beauty Health Company (NASDAQ: SKIN) slumped as much as 16.3% on Tuesday. The maker of the HydraFacial and associated products put up better-than-expected earnings, but investors ended up selling the stock following the report. As of the market close, the stock is down 16.2% for the day.
Before the market opened on Aug. 10, The Beauty Health Company released its second-quarter earnings for the three months ended in June. Net sales were up 55.7% year over year to $103.5 million, handsomely beating the $83.9 million analyst expectation. Management also raised its full-year revenue guidance by $10 million to a range of $340 million to $350 million.
Moving further down the income statement, the company is now profitable, with $7.9 million in net income and $12.6 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) generated in the quarter. Clearly, there is strong demand out there for HydraFacial cleansing and moisturizing equipment right now. Beauty Health is also seeing strong growth from its next-generation HydraFacial product called Syndeo, which was launched in the first quarter of this year. Shipments were up 108% sequentially in Q2.
Source Fool.com
