Waldencast Plc (WALD)

Waldencast plc (WALD) stock fell by 9.36% due to the news that Waldencast plc is facing an investigation into possible securities violations, which may lead to a class action lawsuit on behalf of investors. Waldencast had announced plans to merge with skincare brand Obagi and makeup brand Milk Makeup on November 15, 2021, expanding into the beauty and skincare sector. However, issues with Obagi's financial statements for 2021 and the first quarter of 2022 were later disclosed, leading to a 10.2% stock price drop on July 5, 2023. Further complications arose when Waldencast reported restated financials for 2020 and 2021 on January 16, 2024, causing a 15.29% decrease in its stock price. These events reflect the financial challenges and volatility following the merger agreements and subsequent revelations of financial inaccuracies.

Waldencast plc (WALD) stock dropped by 8.77% due to disappointing earnings results reported by its subsidiary, Waldencast Acquisition. The company reported fourth-quarter earnings per share (EPS) of $0.040. This figure was in line with the analyst consensus estimate of $0.040. However, the real cause for concern was the revenue for the quarter, which fell well short of expectations at $40.9 million, compared to the consensus estimate of $61.45 million. In the past 90 days, Waldencast Acquisition has seen both positive and negative revisions in its earnings per share (EPS). The stock price's reaction to earnings results in the past may provide additional insights into investor sentiment. The significant drop in Waldencast plc's stock value reflects investor disappointment in the weak earnings and revenue figures reported by its subsidiary, Waldencast Acquisition. It will be crucial for the company to address these concerns and potentially regain investor confidence in the future.