Hair care company Olaplex (NASDAQ: OLPX) will be reporting earnings tomorrow before the bell. Here’s what you need to know.
Olaplex beat analysts’ revenue expectations by 14.4% last quarter, reporting revenues of $100.7 million, down 9.8% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Olaplex a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Olaplex’s revenue to decline 5.6% year on year to $93.34 million, improving from the 13.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Olaplex has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Olaplex’s peers in the personal care segment, some have already reported their Q1 results, giving us a hint as to what we can expect. USANA delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 2.7%, and Estée Lauder reported a revenue decline of 9.9%, topping estimates by 1.2%. USANA traded up 5.2% following the results while Estée Lauder’s stock price was unchanged.
Read our full analysis of USANA’s results here and Estée Lauder’s results here.
There has been positive sentiment among investors in the personal care segment, with share prices up 4.9% on average over the last month. Olaplex is up 32% during the same time and is heading into earnings with an average analyst price target of $1.98 (compared to the current share price of $1.39).
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