Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at BeautyHealth (NASDAQ:SKIN) 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 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 the share prices up 1.1% on average since the previous earnings results.
BeautyHealth (NASDAQ:SKIN)
Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.
BeautyHealth reported revenues of $96.8 million, down 1.4% year on year, topping analyst expectations by 10.5%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' gross margin estimates.
The stock is up 26.5% since the results and currently trades at $4.53.
Read our full report on BeautyHealth 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 20% since the results and currently trades at $3.72.
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 23.3% since the results and currently trades at $37.53.
Read our full analysis of Medifast's results here.
Coty (NYSE:COTY)
With a portfolio boasting many household brands, Coty (NYSE:COTY) is a beauty products powerhouse with offerings in cosmetics, fragrances, and skincare.
Coty reported revenues of $1.73 billion, up 13.4% year on year, surpassing analyst expectations by 2.9%. It was a decent quarter for the company, with optimistic earnings guidance for the full year and a solid beat of analysts' earnings estimates.
The stock is down 4% since the results and currently trades at $11.71.
Read our full, actionable report on Coty here, it's free.
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. scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 14.2% since the results and currently trades at $198.
Read our full, actionable report on e.l.f. here, it's free.
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