Q4 Earnings Highlights: Herbalife (NYSE:HLF) Vs The Rest Of The Personal Care Stocks

As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at personal care stocks, starting with Herbalife (NYSE:HLF).

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. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, and while some of the personal care stocks have fared somewhat better than others, they have not been spared, with share prices declining 5.2% on average since the previous earnings results.

Herbalife (NYSE:HLF)

With the first products sold out of the trunk of the founder’s car, Herbalife (NYSE:HLF) today offers a portfolio of shakes, supplements, personal care products, and weight management programs to help customers reach their nutritional and fitness goals.

Herbalife reported revenues of $1.22 billion, up 2.9% year on year, topping analyst expectations by 2.2%. It was a mixed quarter for the company, with a beat of analysts' organic revenue growth expectations, driven by outperformance in its Asia and North America segments. On the other hand, its operating margin and EPS missed Wall Street's estimates.

“We continue to modernize Herbalife with a sharp focus on top-line growth and margin expansion for 2024,” said Michael Johnson, Chairman and CEO.

The stock is down 24.7% since the results and currently trades at $8.85.

Read our full report on Herbalife 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 19.7% since the results and currently trades at $3.71.

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 29.8% since the results and currently trades at $34.35.

Read our full analysis of Medifast's results here.

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, surpassing analyst expectations by 1.6%. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is down 1.2% since the results and currently trades at $36.96.

Read our full, actionable report on Edgewell Personal Care 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. achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 0.8% since the results and currently trades at $172.

Read our full, actionable report on e.l.f. here, it's free.

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