Market News

Evolus Slips 10% On Wider-Than-Expected 4Q Loss

Shares of Evolus fell 10.4% in Wednesday’s extended trading session after the performance beauty company reported a wider-than-expected loss for 4Q.

Evolus (EOLS) posted a GAAP net loss of $3.28 per share which is significantly higher than the Street’s estimates of a $0.34 loss per share.

4Q revenues of $20.6 million surpassed analysts’ expectations of $20.3 million and increased 5.8% year-over-year. However, the company said that its fourth-quarter top-line results were negatively impacted by under-selling a bond required by the United States International Trade Commission (ITC), resulting in minimal sales recording in the last two weeks of the quarter. (See Evolus stock analysis on TipRanks)

Evolus CEO David Moatazedi said, “Over the past several months, we successfully transformed our business by settling the International Trade Commission case and related litigation, eliminating $127 million of debt and payment obligations and strengthening our cash position.”

Following the earnings release, H.C. Wainwright analyst Douglas Tsao reiterated a Buy rating as well as price target of $20 (21.1% upside potential) on the stock.

In a note to investors, Tsao wrote, “we believe the company has ample runway to grow Jeuveau revenues meaningfully, which should allow the company to finance the business on favorable terms. Management commented that it now has a heightened focus on driving Jeuveau growth in the US and plans to expand internationally with a European launch of Nuceiva in early 2022.”

Turning now to the rest of the Wall Street community, Evolus has a Moderate Buy consensus rating based on 3 Buys, 2 Holds and 1 Sell. The average analyst price target of $13.80 implies downside potential of about 16.4% to current levels.  Shares have rallied nearly 343% in one year.

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