Personal Care Stocks Q4 Teardown: Olaplex (NASDAQ:OLPX) Vs The Rest
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today we are looking at the personal care stocks, starting with Olaplex (NASDAQ:OLPX).
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 mixed Q4; on average, revenues beat analyst consensus estimates by 4% while next quarter's revenue guidance was 13.4% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but personal care stocks held their ground better than others, with share prices down 0.2% on average since the previous earnings results.
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 $111.7 million, down 14.5% year on year, topping analyst expectations by 2.8%. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations.
Amanda Baldwin, OLAPLEX’s Chief Executive Officer, commented: "Our fourth quarter results were in line with our expectations and represent another positive step towards stabilizing our demand trend. I am confident in the strong foundation of the OLAPLEX brand and believe that our priorities for the year ahead will position the company to return to consistent sales and profit growth."
The stock is down 10.4% since the results and currently trades at $1.73.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it's free.
Best Q4: The Honest Company (NASDAQ:HNST)
Co-founded by actress Jessica Alba, The Honest Company (NASDAQ:HNST) sells diapers and wipes, skin care products, and household cleaning products.
The Honest Company reported revenues of $90.26 million, up 10.3% year on year, outperforming analyst expectations by 7.3%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue, adjusted EBITDA, and EPS expectations. The market was expecting negative EBITDA and the company delivered positive EBITDA. Full year 2024 guidance for revenue calls for "low-to-mid single digit percentage" revenue growth and "positive low-single digit to mid-single digit millions adjusted EBITDA", which is encouraging.
The stock is up 38.2% since the results and currently trades at $4.29.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $191 million, down 43.4% year on year, exceeding analyst expectations by 3.7%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations. In the face of the demand headwinds the company is facing, it expects to spend more marketing dollars over the next year to acquire new customers.
Medifast had the slowest revenue growth in the group. The stock is down 26.2% since the results and currently trades at $36.09.
Read our full analysis of Medifast's results here.
e.l.f. (NYSE:ELF)
e.l.f. Beauty (NYSE:ELF), which stands for ‘eyes, lips, face’, offers high-quality beauty products at accessible price points.
e.l.f. reported revenues of $270.9 million, up 84.9% year on year, surpassing analyst expectations by 13.4%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.
e.l.f. delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 17.3% since the results and currently trades at $203.39.
Read our full, actionable report on e.l.f. 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 $488.9 million, up 4.2% year on year, surpassing analyst expectations by 1.6%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates. However, full year EPS guidance was below expectations.
The stock is up 0.5% since the results and currently trades at $37.6.
Read our full, actionable report on Edgewell Personal Care here, it's free.
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