Shares of aesthetic solutions provider The BeautyHealth company (NASDAQ:SKIN) nosedived over 50% in the pre-market session today after its disappointing third-quarter results were accompanied by a major shakeup at the company’s top rung. Revenue of $97.4 million fell short of expectations by $18.8 million despite a nearly 10% year-over-year growth. Similarly, EPS of -$0.56 came in lower than expectations by $0.63.
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During the quarter, sales momentum in the Asia-Pacific and EMEA regions was overshadowed by weakness in the U.S. and restructuring charges of nearly $63.1 million associated with SKIN’s Syndeo devices. Consequently, the company has lowered its expectations for net sales for Fiscal year 2023 to the range of $385 million to $400 million from the prior outlook of between $460 million and $480 million.
Additionally, SKIN has suspended its long-term outlook for Fiscal year 2025 as it focuses on protecting the brand equity of its Hydrafacial brand and driving the adoption of Syndeo devices in the U.S.
Separately, the company announced the departure of Andrew Stanleick as its President, CEO, and Board member, effective November 19. Marla Beck, the Director of SKIN, is expected to serve as interim CEO of the company while its Board hones in on a new CEO.
What Is the Stock Price Forecast for SKIN?
Today’s price decline comes on top of a nearly 65% value erosion in SKIN shares over the past six months. Overall, the Street has a Moderate Buy consensus rating on The BeautyHealth Company with an average SKIN price target of $10.38.
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