Wrapping up Q4 earnings, we look at the numbers and key takeaways for the personal care stocks, including Herbalife (NYSE: HLF) and its peers.
While personal care products products may seem more discretionary than food, consumers tend to maintain or even boost their spending on the category during tough times. This phenomenon is known as "the lipstick effect" by economists, which states that consumers still want some semblance of affordable luxuries like beauty and wellness when the economy is sputtering. Consumer tastes are constantly changing, and personal care companies are currently responding to the public’s increased desire for ethically produced goods by featuring natural ingredients in their products.
The 13 personal care stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% since the latest earnings results.
Herbalife (NYSE: HLF)
With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE: HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.
Herbalife reported revenues of $1.21 billion, flat year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 52.1% since reporting and currently trades at $8.55.
Is now the time to buy Herbalife? Access our full analysis of the earnings results here, it’s free.
Best Q4: Olaplex (NASDAQ: OLPX)
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ: OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Olaplex reported revenues of $100.7 million, down 9.8% year on year, outperforming analysts’ expectations by 14.4%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Olaplex achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.2% since reporting. It currently trades at $1.34.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Coty (NYSE: COTY)
With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Coty reported revenues of $1.67 billion, down 3.3% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
Coty delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 17.4% since the results and currently trades at $5.59.
Read our full analysis of Coty’s results here.
Edgewell Personal Care (NYSE: EPC)
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Edgewell Personal Care reported revenues of $478.4 million, down 2.1% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
The stock is down 1.8% since reporting and currently trades at $30.99.
Read our full, actionable report on Edgewell Personal Care here, it’s free.
Medifast (NYSE: MED)
Known for its Optavia program that combines portion-controlled meal replacements with coaching, Medifast (NYSE: MED) has a broad product portfolio of bars, snacks, drinks, and desserts for those looking to lose weight or consume healthier foods.
Medifast reported revenues of $119 million, down 37.7% year on year. This print topped analysts’ expectations by 4.2%. However, it was a slower quarter as it logged revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates.
Medifast had the slowest revenue growth among its peers. The stock is down 11.1% since reporting and currently trades at $14.34.
Read our full, actionable report on Medifast here, it’s free.
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