Personal care company The Honest Company (NASDAQ:HNST) will be reporting results tomorrow after market hours. Here's what to expect.
The Honest Company beat analysts' revenue expectations by 3.5% last quarter, reporting revenues of $86.22 million, up 3.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' earnings 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 3% year on year to $87.09 million, slowing from the 7.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Honest Company has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.5% on average.
Looking at The Honest Company's peers in the personal care segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Edgewell Personal Care posted flat year-on-year revenue, meeting analysts' expectations, and Olaplex reported a revenue decline of 4.8%, in line with consensus estimates.
Read our full analysis of Edgewell Personal Care's results here and Olaplex's results here.
There has been positive sentiment among investors in the personal care segment, with share prices up 3.4% on average over the last month. The Honest Company is up 8.3% during the same time and is heading into earnings with an average analyst price target of $4.8 (compared to the current share price of $3.25).
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