Q1 Earnings Outperformers: Olaplex (NASDAQ:OLPX) And The Rest Of The Personal Care Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Olaplex (NASDAQ:OLPX) 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 Q1; on average, revenues beat analyst consensus estimates by 1.1%. while next quarter's revenue guidance was 7.5% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the personal care stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.2% on average since the previous earnings results.
Olaplex (NASDAQ:OLPX)
Rising to fame on TikTok because of its “bond building" hair products, Olaplex (NASDAQ:OLPX) offers products and treatments that repair the damage caused by traditional heat and chemical-based styling goods.
Olaplex reported revenues of $98.91 million, down 13.1% year on year, topping analysts' expectations by 3.9%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates. The company maintained its previous guidance, showing that things are on track.
Amanda Baldwin, OLAPLEX’s Chief Executive Officer, commented: "Our first quarter results represent progress on the business transformation plan that we outlined earlier this year. I am encouraged with our performance to date and believe we are well-positioned to achieve our goals for 2024."
The stock is up 7.1% since the results and currently trades at $1.5.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $86.22 million, up 3.4% year on year, outperforming analysts' expectations by 3.5%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 9.5% since the results and currently trades at $2.66.
Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $174.7 million, down 49.9% year on year, in line with analysts' expectations. 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 35.9% since the results and currently trades at $22.76.
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 $1.39 billion, up 7.5% year on year, in line with analysts' expectations. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.
The stock is down 8.9% since the results and currently trades at $10.49.
Read our full, actionable report on Coty here, it's free.
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 $3.94 billion, up 5% year on year, in line with analysts' expectations. It was a solid quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 13.4% since the results and currently trades at $127.
Read our full, actionable report on Estée Lauder here, it's free.
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