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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at personal care stocks, starting with Coty (NYSE:COTY).
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 11 personal care stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 16.1% below.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
Weakest Q3: 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 $1.67 billion, up 1.8% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ earnings estimates and underwhelming earnings guidance for the full year.
Unsurprisingly, the stock is down 1.7% since reporting and currently trades at $7.30.
Read our full report on Coty here, it’s free.
Best Q3: 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 $301.1 million, up 39.7% year on year, outperforming analysts’ expectations by 4%. The business had a very strong quarter with an impressive beat of analysts’ earnings and EBITDA estimates.
e.l.f. delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13.3% since reporting. It currently trades at $118.10.
Is now the time to buy e.l.f.? Access our full analysis of the earnings results here, it’s free.
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 $114.6 million, up 3.1% year on year, exceeding analysts’ expectations by 5.2%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ earnings and EBITDA estimates.