The Beauty Health Company (SKIN) surged 16.28% in after-hours trading following its Q3 earnings report, which showed a $0.09 per share loss (worsening from $0.15 a year ago) but exceeded revenue estimates by 2.84%. Despite the earnings miss, the stock’s rally aligns with a positive Zacks Rank #2 (Buy) rating, driven by favorable earnings estimate revisions and management’s outlook. The report highlighted the company’s consistent revenue outperformance (four of four quarters) and a Zacks industry ranking suggesting potential outperformance despite the Medical Services sector’s weak position. Investors appeared to focus on forward-looking optimism, including a current consensus EPS estimate of -$0.05 for the next quarter and the absence of immediate negative guidance, outweighing the near-term earnings shortfall.
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