BofA: Investors pour into bonds, pull back from crypto
On Tuesday, Raymond (NSE:RYMD) James reiterated a Market Perform rating on Olaplex Inc (NASDAQ:OLPX), following the company’s release of their fourth-quarter results earlier in the day. Olaplex’s sales showed a 10% year-over-year decrease, which was a better outcome than the anticipated 21% decline projected by Raymond James and the consensus of estimates from StreetAccount and Bloomberg. According to InvestingPro data, the company maintains impressive gross profit margins of 71.8% despite recent challenges, and analysis suggests the stock is currently trading below its Fair Value.
Despite the sales dip, Olaplex provided a forecast for the fiscal year 2025 that suggests a brighter future. The company’s sales guidance for the year was above the consensus estimates, though their projected earnings before interest, taxes, depreciation, and amortization (EBITDA) fell short of expectations. The top end of Olaplex’s sales outlook for FY25 hints at a possible return to growth during the year, although they anticipate that first-quarter sales will not meet the full-year guidance. InvestingPro analysis reveals the company operates with a moderate level of debt and maintains strong liquidity, with current assets well exceeding short-term obligations. For deeper insights into Olaplex’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The report from Raymond James indicated a cautious optimism about Olaplex’s potential to bounce back, with a particular interest in the upcoming earnings call scheduled for 9:00 a.m. Eastern Standard Time. Analysts are also looking forward to gaining further insights from the management team during the Raymond James Institutional Investor Conference, set to take place on Wednesday, March 5th, at 9:50 a.m. Eastern Standard Time.
Olaplex’s performance in the fourth quarter, beating both the analyst and consensus estimates, despite a year-over-year decline, suggests a resilience in the face of market challenges. The company’s forward-looking statements have set a tone of cautious optimism for the fiscal year ahead. The upcoming discussions at the earnings call and investor conference are expected to provide a clearer picture of Olaplex’s strategies to navigate the current market environment and drive growth.
In other recent news, Olaplex Holdings , Inc. reported fourth-quarter revenue of $100.7 million, which surpassed analyst expectations of $87.51 million. Despite this revenue beat, the company experienced a 9.8% year-over-year decline in sales. Adjusted earnings per share met analyst projections at $0.01. The company’s net sales in the United States saw a slight increase of 0.3%, while international sales fell by 17.4%. For the entire fiscal year 2024, Olaplex reported net sales of $422.7 million, marking a 7.8% decline from the previous year. The specialty retail channel showed growth of 5.4%, whereas the professional and direct-to-consumer channels experienced declines of 19.3% and 5.7%, respectively. Looking forward, Olaplex has provided guidance for fiscal year 2025, projecting net sales between $410 million and $431 million. The company anticipates an adjusted gross profit margin between 70.5% and 71.5%, with an adjusted EBITDA margin ranging from 20% to 22%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.