Overview
- Shares fell about 8% in Monday trading to a 52-week low of $58.04 as investors reacted to new guidance.
- The company posted its 22nd straight quarter of revenue growth and beat earnings estimates, then raised its full-year outlook by less than markets expected.
- Executives said operating margins will tighten next quarter because the company will spend more on marketing to hold its position in a crowded U.S. cosmetics market.
- Morgan Stanley cut the stock to Equalweight and lowered its price target to $67, while Evercore ISI started coverage at In Line with a $68 target.
- Core metrics remain healthy, with gross margin near 70% and revenue up about 17% from a year ago.