Wall Street estimates that Waldencast plc (NASDAQ:WALD) will announce 2024 sales of $81.69 million when fourth-quarter earnings are released next week.

That’s a loss of 1 cent per share, according to data from Benzinga Pro.

Telsey Advisory writes that Waldencast is expected to be less affected by potential tariffs than its competitors.

Last week, President Donald Trump vowed to impose a 25% tariff on imported goods from Mexico and Canada and to double tariffs on those from China to 20%.

Obagi, which Waldencast acquired in 2022, sources very little from China, while about 10%-15% of Milk Makeup’s costs come from the region.

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The company also has the flexibility to shift sourcing away from China. Management plans to reinvest savings from improved gross margins into product packaging.

In the third quarter, Obagi Medical sales increased 37.4% year over year (comparable growth of 45.5%) to $38.7 million.

Analyst Dana Telsey maintains the Outperform rating and a price target of $6.

Telsey Advisory analyst writes that Obagi aims to become the top physician-dispensed skincare brand worldwide. However, the brand’s global awareness is low. Obagi is mainly sold through dermatologists.

To change this, Waldencast is expanding Obagi's marketing beyond clinics by using digital platforms. The company has also relaunched in Vietnam and expanded into Thailand, Singapore, Malaysia, and India.

Milk Makeup sales increased 23.5% to $31.5 in the third quarter.

“With tariffs on Canada and Mexico now in the mix and a higher tariff on China (from 10% in February to now 20% as of March 4), we will be listening for any commentary management has about how it is mitigating the tariff environment,” the analyst writes.

Price Action: Waldencast stock is up 1.12% at $3.16 at the last check Tuesday.

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