Personal Care Stocks Q4 Teardown: Coty (NYSE:COTY) Vs The Rest
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Coty (NYSE:COTY) and the best and worst performers in the personal care industry.
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. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the personal care stocks have fared somewhat better than others, they have not been spared, with share prices declining 7.4% on average since the previous earnings results.
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, topping analyst expectations by 2.9%. It was a strong quarter for the company, with optimistic earnings guidance for the full year and a solid beat of analysts' earnings estimates.
The stock is down 8.9% since the results and currently trades at $11.11.
Is now the time to buy Coty? 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 stock is up 25.5% since the results and currently trades at $3.89.
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.
Medifast had the slowest revenue growth in the group. The stock is down 31.1% since the results and currently trades at $33.69.
Read our full analysis of Medifast'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 $328.7 million, up 5.8% year on year, surpassing analyst expectations by 1.5%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 14.7% since the results and currently trades at $131.21.
Read our full, actionable report on Inter Parfums here, it's free.
Nature's Sunshine (NASDAQ:NATR)
Started on a kitchen table in Utah, Nature’s Sunshine Products (NASDAQ:NATR) manufactures and sells nutritional and personal care products.
Nature's Sunshine reported revenues of $108.9 million, up 6% year on year, falling short of analyst expectations by 1.9%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Nature's Sunshine had the weakest performance against analyst estimates among its peers. The stock is up 15% since the results and currently trades at $19.74.
Read our full, actionable report on Nature's Sunshine here, it's free.
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