Personal Care Stocks Q3 Recap: Benchmarking Nature's Sunshine (NASDAQ:NATR)

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Personal Care Stocks Q3 Recap: Benchmarking Nature's Sunshine (NASDAQ:NATR)

Let’s dig into the relative performance of Nature's Sunshine (NASDAQ:NATR) and its peers as we unravel the now-completed Q3 personal care earnings season.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was 16.1% below.

Thankfully, share prices of the companies have been resilient as they are up 6.6% on average since the latest 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 $114.6 million, up 3.1% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

“The third quarter delivered the highest sales volume this year, with $114.6 million in sales, up 4% versus prior year on a local currency basis. The strong performance was driven by robust customer growth in Japan and Taiwan, continued progress in Korea, and strong execution and customer activation in Central Europe.” said Terrence Moorehead, CEO of Nature’s Sunshine.

Nature's Sunshine Total Revenue
Nature's Sunshine Total Revenue

Nature's Sunshine achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 15.9% since reporting and currently trades at $16.

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

Best Q3: 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 $99.24 million, up 15.2% year on year, outperforming analysts’ expectations by 6.9%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

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