A Look Back at Personal Care Stocks' Q4 Earnings: Edgewell Personal Care (NYSE:EPC) Vs The Rest Of The Pack
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the personal care industry, including Edgewell Personal Care (NYSE:EPC) 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. Inflation (despite slowing) has investors prioritizing near-term cash flows, and while some of the personal care stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.9% on average since the previous earnings results.
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, topping analyst expectations by 1.6%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' organic revenue growth estimates.
"We had a good start to the fiscal year, with 3% organic net sales growth, and notably strong performance across our international markets, reflective of underlying volume growth and further price execution. Gross margin was a highlight and above our expectations, driven by our ability to realize further productivity savings and gains from improved revenue management. With this good start and strong fundamentals in place, we are on track to meet our previous outlook for both top and bottom line." said Rod Little, Edgewell's President and Chief Executive Officer.
The stock is down 2.2% since the results and currently trades at $36.58.
Is now the time to buy Edgewell Personal Care? 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 19% since the results and currently trades at $3.69.
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 30.9% since the results and currently trades at $33.8.
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 very 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 9.3% since the results and currently trades at $11.07.
Read our full, actionable report on Coty here, it's free.
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% since the results and currently trades at $132.35.
Read our full, actionable report on Inter Parfums here, it's free.
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