Beauty Health Stock Plunges After Q3 Print: Analysts Take A Deep Dive, Challenges 'More Than Skin Deep'
Portfolio Pulse from Priya Nigam
Beauty Health Co (NASDAQ:SKIN) shares plummeted after reporting disappointing Q3 results, lowering full-year guidance, and suspending 2025 targets. Analysts from Benchmark, Raymond James, and Stifel reacted by downgrading the stock and adjusting price targets due to product issues with the U.S. Syndeo launch, a decline in Americas sales, and broader industry challenges. Beauty Health will incur a special charge of $44.4 million and an inventory write-off of $18.8 million for Syndeo-related fixes.
November 14, 2023 | 4:56 pm
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NEGATIVE IMPACT
Beauty Health Co's stock plunged due to poor Q3 results, downgraded guidance, and significant product issues with the U.S. Syndeo launch. Analysts downgraded the stock and the company faces a substantial financial charge for remediation.
The negative impact on SKIN's stock price is due to the combination of worse-than-expected Q3 results, lowered future guidance, and the need for costly fixes to the Syndeo product. Analyst downgrades typically lead to a loss of investor confidence and can exacerbate stock price declines in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100