Personal care company The Honest Company (NASDAQ: HNST) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
The Honest Company beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $97.25 million, up 12.8% year on year. It was an exceptional 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 decline 1% year on year to $92.12 million, a reversal from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.5% 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. USANA delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 4.7%, and Nature's Sunshine reported revenues up 3.8%, topping estimates by 2.2%. USANA traded up 12.4% following the results while Nature's Sunshine was also up 13.7%.
Read our full analysis of USANA’s results here and Nature's Sunshine’s results here.
Investors in the personal care segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. The Honest Company is down 3.4% during the same time and is heading into earnings with an average analyst price target of $7.17 (compared to the current share price of $4.82).
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