The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Nature's Sunshine (NASDAQ:NATR) and the rest of the personal care stocks fared in Q1.
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 2.3% 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 $111 million, up 2.2% year on year, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' earnings and gross margin estimates.
Nature's Sunshine achieved the highest full-year guidance raise of the whole group. The stock is down 15.2% since reporting and currently trades at $16.13.
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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 market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $3.37.
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 and underwhelming earnings guidance for the next quarter.
Medifast had the slowest revenue growth in the group. As expected, the stock is down 47.5% since the results and currently trades at $18.63.
Herbalife (NYSE: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 $1.26 billion, flat year on year, in line with analysts' expectations. More broadly, it was an ok quarter for the company with an impressive beat of analysts' earnings estimates but a miss of analysts' organic revenue growth estimates.
The stock is up 29.6% since reporting and currently trades at $11.26.
Inter Parfums (NASDAQ:IPAR) With licenses to produce colognes and perfumes under brands such as Kate Spade, Van Cleef & Arpels, and Abercrombie & Fitch, Inter Parfums (NASDAQ:IPAR) manufactures and distributes fragrances worldwide.
Inter Parfums reported revenues of $324 million, up 3.9% year on year, falling short of analysts' expectations by 1.4%. More broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 2.8% since reporting and currently trades at $127.08.
This content was originally published on Stock Story
