Analysts Are Updating Their The Beauty Health Company (NASDAQ:SKIN) Estimates After Its First-Quarter Results

A week ago, The Beauty Health Company (NASDAQ:SKIN) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. The results overall were pretty good, with revenues of US$70m exceeding expectations and statutory losses coming in at justUS$0.08 per share, some 38% below what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 2 warning signs about Beauty Health. View them for free.

After the latest results, the consensus from Beauty Health's eight analysts is for revenues of US$286.4m in 2025, which would reflect an uneasy 11% decline in revenue compared to the last year of performance. Losses are expected to be contained, narrowing 14% from last year to US$0.26. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$285.9m and losses of US$0.29 per share in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

Check out our latest analysis for Beauty Health

The average price target held steady at US$1.55, seeming to indicate that business is performing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Beauty Health, with the most bullish analyst valuing it at US$2.00 and the most bearish at US$1.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 15% by the end of 2025. This indicates a significant reduction from annual growth of 1.9% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Beauty Health is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Beauty Health's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$1.55, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Beauty Health. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Beauty Health analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Beauty Health (1 is a bit unpleasant) you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.