Personal care company The Honest Company (NASDAQ: HNST) will be reporting results tomorrow after market close. Here’s what you need to know.
The Honest Company beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $99.84 million, up 10.6% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is The Honest Company a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The Honest Company’s revenue to grow 6.7% year on year to $91.97 million, improving from the 3.4% increase 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. The Honest Company has missed Wall Street’s revenue estimates twice over the last two years.
Looking at The Honest Company’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 2.1% on average over the last month. The Honest Company is up 15.3% during the same time and is heading into earnings with an average analyst price target of $7.42 (compared to the current share price of $4.97).
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