It’s been a huge day for Olaplex Holdings (NASDAQ:OLPX), as the hair care product maker saw shares launch upward, higher than the tallest bouffant. Investors piled in, sending Olaplex shares up over 23% in Tuesday afternoon’s trading thanks to a third-quarter earnings report that proved every bit a match for expectations and then some.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The numbers came in fairly well for Olaplex, with earnings per share coming in at $0.05 per share against analyst expectations calling for just $0.03 per share. Revenue, meanwhile, came in at $123.6 million, which beat analyst expectations calling for $115.69. The only unkind word that could be said about Olaplex’s third-quarter performance was that the $123.6 million in revenue it brought in was 30% less than the third quarter of 2022. But since everyone—including analysts—expected as much, even the loss proved a win in the end.
By way of explanation, Olaplex staffers noted that demand trends are finally starting to stabilize and become a bit more predictable. As a result, Olaplex can carry on and make fairly standard returns in the process. This is good news, especially for a company that not so long ago found itself staring down the barrel of lawsuits over its products causing damage to hair.
Is Olaplex Holdings Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on OLPX stock based on one Buy, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average OLPX price target of $3.30 per share implies 92.42% upside potential.
