Q4 Earnings Highlights: Estée Lauder (NYSE:EL) Vs The Rest Of The Personal Care Stocks

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 Estée Lauder (NYSE:EL) 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. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and personal care stocks have had a rough stretch, with share prices down 12.5% on average since the previous earnings results.

Estée Lauder (NYSE:EL)

Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.

Estée Lauder reported revenues of $4.28 billion, down 7.4% year on year, in line with analyst expectations. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter. The company did provide some silver lining, though, projecting a "return to double-digit organic net sales growth in the second half of fiscal 2024."

Fabrizio Freda, President and Chief Executive Officer said, “For the second quarter of fiscal 2024, we delivered our organic sales outlook and exceeded expectations for profitability. The Ordinary and La Mer in Skin Care, Clinique in Makeup, and Le Labo and Jo Malone London in Fragrance performed strongly. Many developed and emerging markets around the world continued to grow organically and at retail. While mainland China and Asia travel retail declined, our retail sales trended ahead of organic sales, and these businesses are poised to return to organic sales growth in the second half.

The stock is up 2.8% since the results and currently trades at $138.01.

Is now the time to buy Estée Lauder? 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 revenue, adjusted EBITDA, and EPS exceeding 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 3.2% since the results and currently trades at $3.2.

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 35.4% since the results and currently trades at $31.61.

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. However, full year adjusted EBITDA guidance was slightly below.

The stock is down 12.7% since the results and currently trades at $10.65.

Read our full, actionable report on Coty here, it's free.

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 mixed quarter for the company, with an impressive beat of analysts' earnings estimates. However, full year EPS guidance was below expectations.

The stock is down 5.6% since the results and currently trades at $35.32.

Read our full, actionable report on Edgewell Personal Care here, it's free.

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