Shares of Santa Barbara-based Olaplex Holdings (NASDAQ:OLPX) rose by 26% to $1.74 on Tuesday, following the release of its Q3 results and a revised fiscal 2023 outlook, which offset the company's 67% year-to-date stock decline.
The beauty company reported Q3 results that surpassed expectations, despite a net income drop to $20.4 million or 3 cents a share from the previous year's $60.8 million. Adjusted earnings came in at 5 cents a share, beating analysts' 3-cent estimate. In addition, sales for the quarter fell by 30% to $123.6 million, but still managed to exceed FactSet analysts' prediction of $115.6 million.
Looking ahead, Olaplex has updated its fiscal 2023 outlook. The company now forecasts sales of $450-$460 million, marking a slight adjustment from the initial range of $445-$465 million. Adjusted net income is expected to land between $100-$108 million with an EBITDA of $166-$174 million.
Interim CEO J.P. Bilbrey remains positive about the company's future, expressing optimism for sales stabilization by the second half of 2023.
InvestingPro Insights
As per InvestingPro's real-time data, Olaplex Holdings commands a market capitalization of $1.6 billion. This is a key metric to gauge the company's size and growth potential. With a Price/Earnings ratio of 25.6, the company is relatively valued compared to others in the industry. Moreover, the stock holds an average "Buy" rating from 15 analysts, indicating a generally positive outlook.
InvestingPro Tips suggest that investors should closely monitor Olaplex's upcoming Q4 results and fiscal 2024 outlook. This will provide insights into the company's financial health and future prospects. Additionally, staying abreast with the overall beauty industry trends and market dynamics can be beneficial, as these factors can significantly affect Olaplex's performance.
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