Overview

• US hair care company's Q1 sales rose 2.5% yr/yr, beating analyst expectations

• Adjusted net income and adjusted EBITDA for Q1 beat analyst expectations

• Company will not update guidance due to pending acquisition by Henkel

Outlook

• Company will not provide or update financial guidance due to pending acquisition by Henkel

Result Drivers

• NEW PRODUCT LAUNCH - Co said Q1 sales growth was led by the launch of No. 3 PLUS

• CHANNEL MIX - Sales rose in professional and direct-to-consumer channels but declined in specialty retail; international sales increased while U.S. sales fell

• TRANSFORMATION PRIORITIES - Co attributed higher sales to operational execution of transformation priorities, per CEO Amanda Baldwin

Company press release: ID:nGNXMrSCj

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$99.37 mln	$94.17 mln (7 Analysts)
Q1 EPS		-$0.01
Q1 Adjusted Net Income	Beat	$10.65 mln	$7.22 mln (6 Analysts)
Q1 Adjusted EBITDA	Beat	$18.98 mln	$13.95 mln (8 Analysts)
Q1 Adjusted EBITDA Margin		19.10%
Q1 Gross Profit		$71.66 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy."

• Wall Street's median 12-month price target for Olaplex Holdings Inc is $2.00, about 1.7% below its May 8 closing price of $2.04

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 17 three months ago

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