Q3 Earnings Highs And Lows: Coty (NYSE:COTY) Vs The Rest Of The Personal Care Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Coty (NYSE:COTY), and the best and worst performers in the personal care group.
Personal care products include lotions, fragrances, shampoos, cosmetics, and nutritional supplements, among others. While these 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. As with other consumer staples categories, personal care brands must exude quality and be priced optimally given the crowded competitive landscape. 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 14 personal care stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 0.8% while next quarter's revenue guidance was 15.7% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but personal care stocks held their ground better than others, with the share prices up 18.5% 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 $1.64 billion, up 18.1% year on year, topping analyst expectations by 3.9%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.
The stock is up 20.9% since the results and currently trades at $11.99.
Read our full report on Coty here, it's free.
Best Q3: Olaplex (NASDAQ:OLPX)
A pioneer in the “bond building’ segment of hair care, Olaplex (NASDAQ:OLPX) offers products and treatments that focus on repairing the damage caused by traditional heat and chemical-based styling processes.
Olaplex reported revenues of $123.6 million, down 30% year on year, outperforming analyst expectations by 6.8%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 74.6% since the results and currently trades at $2.41.
Is now the time to buy Olaplex? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Nu Skin (NYSE:NUS)
With person-to-person marketing and sales rather than selling through retail stores, Nu Skin (NYSE:NUS) is a personal care and dietary supplements company that engages in direct selling.
Nu Skin reported revenues of $498.8 million, down 7.3% year on year, falling short of analyst expectations by 4.1%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is down 0.1% since the results and currently trades at $18.62.
Read our full analysis of Nu Skin's results here.
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 $1.28 billion, down 1.1% year on year, surpassing analyst expectations by 2.3%. It was a weak quarter for the company, with a miss of analysts' operating margin estimates.
The stock is down 9.8% since the results and currently trades at $12.57.
Read our full, actionable report on Herbalife here, it's free.
BellRing Brands (NYSE:BRBR)
Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
BellRing Brands reported revenues of $472.6 million, up 24.6% year on year, surpassing analyst expectations by 2.6%. It was a solid quarter for the company, with an impressive beat of analysts' revenue, adjusted EBITDA, and EPS expectations.
The stock is up 22.3% since the results and currently trades at $55.51.
Read our full, actionable report on BellRing Brands here, it's free.
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The author has no position in any of the stocks mentioned
