Spotting Winners: Nature's Sunshine (NASDAQ:NATR) And Personal Care Stocks In Q4
Looking back on personal care stocks' Q4 earnings, we examine this quarter's best and worst performers, including Nature's Sunshine (NASDAQ:NATR) 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 have faced challenges as investors prioritize 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 5.2% on average since the previous earnings results.
Nature's Sunshine (NASDAQ:NATR)
Started on a kitchen table in Utah, Nature’s Sunshine Products (NASDAQ:NATR) manufactures and sells nutritional and personal care products.
Nature's Sunshine reported revenues of $108.9 million, up 6% year on year, falling short of analyst expectations by 1.9%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates and an impressive beat of analysts' operating margin estimates.
“The positive momentum in our business continued in the fourth quarter as sales increased 6.0%, with double-digit sales growth in North America and a more than tripling of our net income to $9 million,” said CEO Terrence Moorehead.
Nature's Sunshine delivered the weakest performance against analyst estimates of the whole group. The stock is up 16.4% since the results and currently trades at $19.98.
Is now the time to buy Nature's Sunshine? 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 29% since the results and currently trades at $4.
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 and a miss of analysts' operating margin estimates.
Medifast had the slowest revenue growth in the group. The stock is down 24.4% since the results and currently trades at $37.
Read our full analysis of Medifast's results here.
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 $111.7 million, down 14.5% year on year, surpassing analyst expectations by 2.8%. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations.
The stock is down 3.9% since the results and currently trades at $1.85.
Read our full, actionable report on Olaplex 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. scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 10.6% since the results and currently trades at $191.69.
Read our full, actionable report on e.l.f. here, it's free.
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