Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at BeautyHealth (NASDAQ: SKIN) 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 12 personal care stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.2% above.

While some personal care stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.

BeautyHealth (NASDAQ: SKIN)

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 $70.66 million, down 10.3% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

“Our third-quarter results reflect disciplined execution and the continued strengthening of BeautyHealth’s foundation,” said BeautyHealth President and CEO, Pedro Malha.

BeautyHealth scored the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.3% since reporting and currently trades at $1.26.

Is now the time to buy BeautyHealth? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Nature's Sunshine (NASDAQ: NATR)

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Nature's Sunshine reported revenues of $128.3 million, up 12% year on year, outperforming analysts’ expectations by 6.7%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Nature's Sunshine pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 54.5% since reporting. It currently trades at $21.17.

Is now the time to buy Nature's Sunshine? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Edgewell Personal Care (NYSE: EPC)

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 $537.2 million, up 3.8% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 4.1% since the results and currently trades at $18.13.

Read our full analysis of Edgewell Personal Care’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 $114.6 million, down 3.8% year on year. This number surpassed analysts’ expectations by 4.2%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Olaplex had the weakest full-year guidance update among its peers. The stock is down 2% since reporting and currently trades at $1.04.

Read our full, actionable report on Olaplex here, it’s free for active Edge members.

Coty (NYSE: COTY)

With a portfolio boasting many household brands, Coty (NYSE: COTY) is a beauty products powerhouse spanning cosmetics, fragrances, and skincare.

Coty reported revenues of $1.58 billion, down 5.6% year on year. This print met analysts’ expectations. Zooming out, it was a slower quarter as it recorded a significant miss of analysts’ EPS estimates and a slight miss of analysts’ organic revenue estimates.

The stock is down 5.8% since reporting and currently trades at $3.53.

Read our full, actionable report on Coty here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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