Stock Story -
Hair care company Olaplex (NASDAQ:OLPX) will be announcing earnings results tomorrow morning. Here's what investors should know.
Olaplex beat analysts' revenue expectations by 3.9% last quarter, reporting revenues of $98.91 million, down 13.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.
Is Olaplex a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Olaplex's revenue to decline 5.1% year on year to $103.6 million, improving from the 48.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Olaplex has missed Wall Street's revenue estimates twice over the last two years.
Looking at Olaplex's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Herbalife (NYSE:HLF)'s revenues decreased 2.5% year on year, missing analysts' expectations by 3.6%, and USANA reported a revenue decline of 10.6%, falling short of estimates by 3.7%. Herbalife traded down 8.5% following the results while USANA was also down 3.1%.
Read the full analysis of Herbalife's and USANA's results on StockStory.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 4% on average over the last month. Olaplex is up 25.2% during the same time and is heading into earnings with an average analyst price target of $2.4 (compared to the current share price of $1.84).
![Olaplex (OLPX) Q2 Earnings Report Preview: What To Look For](https://d68-invdn-com.investing.com/content/pica9f953d9a4f9d5257108540836fcba29.jpeg)