Shares of aesthetic products provider The Beauty Health Company (NASDAQ:SKIN) are on the rise today after its second-quarter revenue rose 13.5% year-over-year to $117.5 million, outperforming estimates by ~$1.4 million. EPS at $0.03 too landed well past last year’s $0.01 mark.
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The jump in the topline came on the back of robust demand for SKIN’s Hydrafacial brand. Further, Delivery system net sales grew by over 30% (excluding trade-up demand) during the quarter.
Moreover, while net sales in the APAC region rose by over 143%, net sales in China clocked a +265% growth, climbing back to pre-pandemic levels. Additionally, net sales in EMEA too rose by over 61% during the quarter.
Recently, the company has also bagged a clearance from the U.S. Food and Drug Administration for a new facial acne scarring indication for SkinStylus and is planning to expand Hydrafacial’s Sephora presence to Australia and Malaysia later this year.
Buoyed by robust trends in China and demand for Hydrafacial, SKIN now expects net sales for the year to hover between $460 million and $480 million with adjusted EBITDA margin in the range of 18% to 19%.
Overall, the Street has a $19 consensus price target on SKIN alongside a Moderate Buy consensus rating. This points to an eye-popping 152.3% potential upside in the stock.
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