Q3 Earnings Highlights: Medifast (NYSE:MED) Vs The Rest Of The Personal Care Stocks

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Q3 Earnings Highlights: Medifast (NYSE:MED) Vs The Rest Of The Personal Care Stocks

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 Medifast (NYSE:MED).

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.

Slowest Q3: 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 $140.2 million, down 40.6% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with optimistic earnings guidance for the next quarter and an impressive beat of analysts’ earnings estimates.

“Medical innovation has transformed the weight loss industry, so at Medifast we’re creating a health and wellness business of the future by meeting the unique needs of customers regardless of their approach to their health goals,” said Dan Chard, Chairman & CEO.

Medifast Total Revenue
Medifast Total Revenue

Medifast delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 6% since reporting and currently trades at $19.90.

Is now the time to buy Medifast? Access our full analysis of the earnings results 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.

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