Q3 Earnings Outperformers: Medifast (NYSE:MED) And The Rest Of The Personal Care Stocks
Let's dig into the relative performance of Medifast (NYSE:MED) and its peers as we unravel the now-completed Q3 personal care earnings season.
Personal care products include lotions, fragrances, shampoos, cosmetics, and nutritional supplements, among others. While these 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. As with other consumer staples categories, personal care brands must exude quality and be priced optimally given the crowded competitive landscape. 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 14 personal care stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 0.8% while next quarter's revenue guidance was 15.7% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but personal care stocks held their ground better than others, with the share prices up 20.2% on average since the previous earnings results.
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 $235.9 million, down 39.6% year on year, topping analyst expectations by 1.6%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
“We are adapting our business model to adjust to the rapidly evolving health and wellness market, leveraging the power of our balance sheet and our clinically proven Coach-led model,” said Dan Chard, Chairman & CEO of Medifast.
Medifast delivered the slowest revenue growth of the whole group. The stock is down 23.4% since the results and currently trades at $54.02.
Is now the time to buy Medifast? Access our full analysis of the earnings results here, it's free.
Best Q3: Olaplex (NASDAQ:OLPX)
A pioneer in the “bond building’ segment of hair care, Olaplex (NASDAQ:OLPX) offers products and treatments that focus on repairing the damage caused by traditional heat and chemical-based styling processes.
Olaplex reported revenues of $123.6 million, down 30% year on year, outperforming analyst expectations by 6.8%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 73.2% since the results and currently trades at $2.39.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Nu Skin (NYSE:NUS)
With person-to-person marketing and sales rather than selling through retail stores, Nu Skin (NYSE:NUS) is a personal care and dietary supplements company that engages in direct selling.
Nu Skin reported revenues of $498.8 million, down 7.3% year on year, falling short of analyst expectations by 4.1%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is down 1.9% since the results and currently trades at $18.29.
Read our full analysis of Nu Skin's results here.
Inter Parfums (NASDAQ:IPAR)
With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide.
Inter Parfums reported revenues of $368 million, up 31.2% year on year, surpassing analyst expectations by 3.8%. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 10.7% since the results and currently trades at $141.14.
Read our full, actionable report on Inter Parfums here, it's free.
BellRing Brands (NYSE:BRBR)
Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
BellRing Brands reported revenues of $472.6 million, up 24.6% year on year, surpassing analyst expectations by 2.6%. It was a solid quarter for the company, with a decent beat of analysts' revenue estimates.
The stock is up 15.6% since the results and currently trades at $52.47.
Read our full, actionable report on BellRing Brands here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned
