Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Coty (NYSE: COTY) 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.
While some personal care stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.1%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates.
Coty delivered the weakest performance against analyst estimates of the whole group. The stock is down 18.6% since reporting and currently trades at $5.51.
Read our full report on Coty 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 pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $1.39.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it’s free.
Nature's Sunshine (NASDAQ: NATR)
Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.
Nature's Sunshine reported revenues of $118.2 million, up 8.5% year on year, exceeding analysts’ expectations by 8.1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
As expected, the stock is down 11% since the results and currently trades at $13.01.
Read our full analysis of Nature's Sunshine’s results here.
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 beat analysts’ expectations by 0.6%. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 43.2% since reporting and currently trades at $8.05.
Read our full, actionable report on Herbalife here, it’s free.
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 result met analysts’ expectations. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates.
The stock is down 4% since reporting and currently trades at $30.31.
Read our full, actionable report on Edgewell Personal Care here, it’s free.
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