Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at The Honest Company (NASDAQ: HNST) 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 strong Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.2% above.

Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results.

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 $92.57 million, down 6.7% year on year. This print fell short of analysts’ expectations by 7%. Overall, it was a mixed quarter for the company with EPS in line with analysts’ estimates but full-year EBITDA guidance missing analysts’ expectations significantly.

“While third quarter revenue was softer than anticipated, our team’s disciplined execution delivered profitability improvement resulting in positive net income. In response to a challenging macroeconomic environment, our teams are acting decisively to strengthen performance across our portfolio. Our strategy remains focused on building a stronger and more scaled Honest brand, advancing operational efficiency and strengthening financial profitability,” said Chief Executive Officer, Carla Vernón.

The Honest Company delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 16.8% since reporting and currently trades at $2.75.

Is now the time to buy The Honest Company? 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 achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 59.3% since reporting. It currently trades at $21.83.

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 and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 7.8% since the results and currently trades at $17.44.

Read our full analysis of Edgewell Personal Care’s results here.

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 $89.41 million, down 36.2% year on year. This result was in line with analysts’ expectations. Overall, it was a very strong quarter as it also produced EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Medifast had the slowest revenue growth among its peers. The stock is down 5% since reporting and currently trades at $11.29.

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

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 $429.6 million, up 1.2% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is down 6.6% since reporting and currently trades at $85.20.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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