HNST Earnings Prediction
The chart below shows how HNST performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HNST sees a +9.81% change in stock price 10 days leading up to the earnings, and a +7.56% change 10 days following the report. On the earnings day itself, the stock moves by -0.50%. This data can give you a slight idea of what to expect for the next quarter's release.
HNST Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
99.24M
15.17%
6.65%
Gross Margin
38.69%
22.55%
1.10%
Operating Margin
4.18%
166.03%
-287.44%
Net Margin
0.17%
101.81%
-103.88%
EPS
0.00
-100.00%
-100.00%
No Data Available
HNST Earnings Analysis
The Honest Company, Inc. Common Stock Corporation (HNST.O) Earnings Conference Call
Positive
Record Quarterly Revenue: We delivered our highest quarterly revenue in the history of the Honest Company with $99 million in sales, which was an increase of 15% year-over-year.
Gross Margin Expansion: We achieved a gross margin of 39%, representing an expansion of 710 basis points over the same period last year.
Consistent Positive EBITDA: We generated adjusted EBITDA of $7 million, representing our fourth consecutive quarter of positive adjusted EBITDA.
Portfolio Growth Comparison: Honest's portfolio grew 9% year-over-year, compared to a 2% decline in the comparable personal care sector.
Household Penetration Increase: Our household penetration among Honest users reached 6.7%, an increase of 23 basis points versus last year.
Negative
Operating Expenses Increase: Operating expenses increased by $3 million compared to the third quarter last year, representing a 220 basis points increase as a percentage of revenue generated.
SG&A Percentage Decline: SG&A as a percentage of revenue decreased by 440 basis points compared to last year, indicating a rise in operational costs despite revenue growth.
Legal Expenses Impact Profitability: Non-recurring legal expenses of $4.1 million were included in this quarter's SG&A, impacting overall profitability.
Inventory Decrease Analysis: Inventory at quarter end was $75 million, a decrease of $5 million from the end of the third quarter of 2023, indicating potential supply chain issues.
Non-Recurring Legal Expenses: Despite a strong revenue increase, the company expects additional non-recurring expenses of $4 million to $5 million related to legal matters in the fourth quarter.
HNST FAQs
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HNST Earning Call Sentiment
The Honest Company, Inc. (HNST) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HNST.O
1.33%Positive
The earnings call reveals strong financial performance with a 15% revenue growth, positive adjusted EBITDA, and improved gross margins. The company's raised guidance and sustainable consumption trends indicate optimism. The Q&A section highlights management's confidence in marketing investments and strategic growth opportunities, such as the dollar store segment. Despite potential risks like tariffs, the company's flexibility and strategic plans suggest resilience. The positive shareholder return plan and absence of debt further support a positive outlook. Overall, the sentiment is positive, with potential for a 2% to 8% stock price increase.
