Olaplex Earnings: What To Look For From OLPX

Radek Strnad /
2024/05/01 3:15 am EDT

Hair care company Olaplex (NASDAQ:OLPX) will be reporting results tomorrow morning. Here's what you need to know.

Olaplex beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $111.7 million, down 14.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts' gross margin estimates but full-year revenue guidance missing analysts' expectations.

Is Olaplex a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Olaplex's revenue to decline 16.4% year on year to $95.13 million, improving from the 38.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

Olaplex Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Olaplex has missed Wall Street's revenue estimates twice over the last two years.

Looking at Olaplex's peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. USANA's revenues decreased 8.3% year on year, meeting analysts' expectations, and Medifast reported a revenue decline of 49.9%, in line with consensus estimates. Medifast traded down 22.5% following the results.

Read our full analysis of USANA's results here and Medifast's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the consumer staples stocks have fared somewhat better, they have not been spared, with share prices down 3.6% on average over the last month. Olaplex is down 27.3% during the same time and is heading into earnings with an average analyst price target of $2.6 (compared to the current share price of $1.41).

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