Reflecting On Personal Care Stocks’ Q4 Earnings: Edgewell Personal Care (NYSE:EPC)
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how personal care stocks fared in Q4, starting with Edgewell Personal Care (NYSE:EPC).
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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was 7% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 16.5% since the latest earnings results.
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 $478.4 million, down 2.1% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.
Edgewell Personal Care Total Revenue
The stock is down 5.2% since reporting and currently trades at $29.92.
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 $100.7 million, down 9.8% year on year, outperforming analysts’ expectations by 14.4%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Olaplex Total Revenue
Olaplex pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 10.2% since reporting. It currently trades at $1.23.
With a portfolio boasting many household brands, Coty (NYSE:COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.
Coty reported revenues of $1.67 billion, down 3.3% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ EPS and organic revenue estimates.
Coty delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 23.2% since the results and currently trades at $5.20.
Operating in the emerging beauty health category, the appropriately named BeautyHealth (NASDAQ:SKIN) is a skincare company best known for its Hydrafacial product that cleanses and hydrates skin.
BeautyHealth reported revenues of $83.5 million, down 13.7% year on year. This print surpassed analysts’ expectations by 8%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.
BeautyHealth had the weakest full-year guidance update among its peers. The stock is down 26.8% since reporting and currently trades at $1.04.
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products.
USANA reported revenues of $213.6 million, down 3.4% year on year. This number topped analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is down 22.6% since reporting and currently trades at $24.74.
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
