Olaplex (OLPX) Q4 Earnings: What To Expect

Hair care company Olaplex (NASDAQ:OLPX) will be reporting results tomorrow morning. Here’s what to look for.

Olaplex missed analysts’ revenue expectations by 4.9% last quarter, reporting revenues of $119.1 million, down 3.6% year on year. It was a softer quarter for the company, with full-year revenue guidance missing analysts’ expectations.

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 21.2% year on year to $88.07 million, a further deceleration from the 14.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 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 Q4 results, giving us a hint as to what we can expect. The Honest Company delivered year-on-year revenue growth of 10.6%, beating analysts’ expectations by 3.1%, and Herbalife reported flat revenue, topping estimates by 0.6%. The Honest Company traded down 12% following the results while Herbalife was up 42.5%.

Read our full analysis of The Honest Company’s results here and Herbalife’s results here.

Investors in the personal care segment have had steady hands going into earnings, with share prices flat over the last month. Olaplex is down 6% during the same time and is heading into earnings with an average analyst price target of $2.12 (compared to the current share price of $1.42).

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