Wrapping up Q4 earnings, we look at the numbers and key takeaways for the personal care stocks, including 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 13 personal care stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 4% while next quarter's revenue guidance was 13.4% below consensus. Investors abandoned cash-burning companies to buy stocks with higher margins of safety, but personal care stocks held their ground better than others, with the share prices up 1.2% on average since the previous earnings results.

Best Q4: 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 $90.26 million, up 10.3% year on year, topping analyst expectations by 7.3%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue, adjusted EBITDA, and EPS expectations.

“Our fourth quarter results demonstrate the benefit that our Transformation Initiative has had on the business. Our clear focus on Brand Maximization, Margin Enhancement, and Operating Discipline has enabled us to achieve both positive Net Income and positive Adjusted EBITDA,” said Chief Executive Officer, Carla Vernón.

The stock is up 29% since the results and currently trades at $4.

Is now the time to buy The Honest Company? Access our full analysis of the earnings results here, it's free.

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 $270.9 million, up 84.9% year on year, outperforming analyst expectations by 13.4%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and full-year revenue guidance exceeding analysts' expectations.

e.l.f. delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 10.6% since the results and currently trades at $191.69.

Is now the time to buy e.l.f.? Access our full analysis of the earnings results here, it's free.

Weakest Q4: 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 $191 million, down 43.4% year on year, exceeding analyst expectations by 3.7%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts' expectations and a miss of analysts' operating margin estimates.

Medifast had the slowest revenue growth in the group. The stock is down 24.4% since the results and currently trades at $37.

Read our full analysis of Medifast's results here.

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 $488.9 million, up 4.2% year on year, surpassing analyst expectations by 1.6%. It was a mixed  quarter for the company, with an impressive beat of analysts' revenue estimates. Gross margin and EPS also outperformed. However, full year EPS guidance was below expectations.

The stock is up 1.1% since the results and currently trades at $37.83.

Read our full, actionable report on Edgewell Personal Care here, it's free.

Estée Lauder (NYSE:EL)

Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE:EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.

Estée Lauder reported revenues of $4.28 billion, down 7.4% year on year, in line with analyst expectations. It was a decent quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter.

The stock is up 13.3% since the results and currently trades at $152.03.

Read our full, actionable report on Estée Lauder here, it's free.

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