Evolus updates 1 key risk factor

Shares of performance beauty company, Evolus Inc. (EOLs) have jumped 37.3% since the start of the year. Its botulinum toxin type A injection, Jeuveau, is the only FDA-approved neurotoxin on the market dedicated to aesthetics. Evolus’ recent fourth-quarter performance fell short of Street’s expectations despite robust revenue growth.

Thanks to strong JEUVEAU sales, revenue jumped 68.4% year-over-year to $34.7 million, but missed Street’s estimate of $118,000. Net loss per share at $0.24 was above analysts’ expectations of $0.05. The total number of customer accounts with the company increased by 400 during the quarter to 7,000.

Evolus focused on improving visibility and ran over 2,300 one-to-one co-branded marketing campaigns during the year, generating over 1 billion impressions. This is an impressive 20x jump in impressions from the previous year.

Looking ahead, for 2022, the company expects revenue to be between $143 million and $150 million, indicating growth of between 43% and 50%. Additionally, Evolus will attend the Barclays Global Healthcare Conference on March 15.

With these developments in mind, let’s take a look at the changes in Evolus’ key risk factors that investors should be aware of.

Risk factors

According to the TipRanks Risk Factors tool, Evolus’ top risk category is Finance & Corporate, contributing to 20 of the stock’s 55 identified risks.

In its recent report, the company added a key risk factor in the Finance & Corporate risk category. Compared to a sector average of 15 Finance & Corporate risk factors, Evolus is at 20.

Evolus noted that the planned shutdown of the London Interbank Offer Rate (LIBOR) could have a negative impact on its operations. At the end of December 2021, the company had $71.2 million of debt outstanding, bearing interest at a floating rate using LIBOR as the benchmark rate.

The discontinuation of LIBOR would result in changes to the way interest is calculated on Evolus’ floating rate debt, including its term loans. Uncertainties exist as to the transition from LIBOR to another reference rate. The consequences of the changes associated with LIBOR cannot be fully predicted and could lead to an increase in the cost of floating rate debt for Evolus.

Hedge fund activity

According to data from TipRanks, Wall Street’s top hedge funds increased their holdings in Evolus by 392,800 shares over the past quarter, indicating a signal of neutral hedge fund confidence in the stock. Larry Robbins’ Glenview Capital Management owns an approximate $2.56 million stake in Evolus.

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