This Stock Halved In 1 Day - Why Is BeautyHealth Company Stock Plunging Today

The BeautyHealth Company SKIN announced that Andrew Stanleick will depart the Company as President and CEO and relinquish his Board seat, effective November 19, 2023. 

Current BeautyHealth Director Marla Beck will serve as Interim Chief Executive Officer while the Company's Board of Directors completes a formal search for a new CEO.

Mr. Stanleick will serve in an advisory role with the company through the end of the year.

Beauty Health also reported a Q3 EPS loss of $(0.56), missing the consensus of $0.09 and down from $(0.03) a year ago.

Net sales were $97.4 million, missing the consensus of $116.30 million.

The sales increased 10% Y/Y on the strength of performance in Asia-Pacific, including China and EME% at A. 

The quarter was overshadowed by lower-than-expected U.S. revenue and restructuring charges related to device upgrades of early-generation Syndeo devices.

The management decided to only market and sell Syndeo 3.0 devices due to provider experience issues with earlier generation Syndeo devices.

Gross margin was (12.9)% compared to 69.1% in Q3 2022, as it was adversely impacted by $63.1 million associated with the Syndeo Program and higher charges related to other discontinued, excess, and obsolete product costs.

Guidance: BeautyHealth lowered its FY23 sales guidance to $385 million-$400 million from the earlier range of $460 million – $480 million and the consensus of $462.77 million.

The company sees FY23 adjusted EBITDA margin of 5%–6%, down from 18%–19% expected earlier.

The company suspended its long-term FY25 outlook.

Price Action: SKIN shares are down 58.30% at $1.62 on the last check Tuesday.