Personal care company The Honest Company (NASDAQ: HNST) will be announcing earnings results this Wednesday after the bell. Here’s what to look for.
The Honest Company met analysts’ revenue expectations last quarter, reporting revenues of $88.04 million, down 11.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates.
Is The Honest Company a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting The Honest Company’s revenue to decline 22% year on year, a reversal from the 12.8% increase it recorded in the same quarter last year.
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 missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at The Honest Company’s peers in the consumer staples segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Medifast’s revenues decreased 34.3% year on year, beating analysts’ expectations by 9.9%, and Estée Lauder reported revenues up 4.6%, in line with consensus estimates. Estée Lauder traded up 6% following the results.
Read our full analysis of Medifast’s results here and Estée Lauder’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. The Honest Company is up 19.8% during the same time and is heading into earnings with an average analyst price target of $3.50 (compared to the current share price of $3.33).
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