What's Next: Honest Co's Earnings Preview
Honest Co (NASDAQ:HNST) is preparing to release its quarterly earnings on Wednesday, 2025-08-06. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Honest Co to report an earnings per share (EPS) of $0.04.
Investors in Honest Co are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Earnings History Snapshot
In the previous earnings release, the company beat EPS by $0.01, leading to a 8.75% drop in the share price the following trading session.
Here's a look at Honest Co's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.02 | -0.01 | -0.04 | -0.04 |
| EPS Actual | 0.03 | -0.01 | 0 | -0.04 |
| Price Change % | -9.0% | -12.0% | 25.0% | 14.000000000000002% |
Tracking Honest Co's Stock Performance
Shares of Honest Co were trading at $4.79 as of August 04. Over the last 52-week period, shares are up 46.96%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Insights Shared by Analysts on Honest Co
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Honest Co.
Analysts have provided Honest Co with 2 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $7.0, suggesting a potential 46.14% upside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of and Natures Sunshine Products, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Natures Sunshine Products, with an average 1-year price target of $20.0, suggesting a potential 317.54% upside.
Summary of Peers Analysis
The peer analysis summary provides a snapshot of key metrics for and Natures Sunshine Products, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Honest Co | Neutral | 12.80% | $37.67M | 1.84% |
| Natures Sunshine Products | Buy | 3.80% | $82.30M | 3.34% |
Key Takeaway:
Honest Co ranks higher than its peer in terms of revenue growth and gross profit margin. However, it lags behind in terms of return on equity. Overall, Honest Co is positioned in the middle compared to its peer group based on the provided financial metrics.
All You Need to Know About Honest Co
The Honest Co Inc is a digitally-native consumer products company to makes purpose-driven consumer products designed for all people. It is an omnichannel brand, ensuring its products are available wherever its consumers shop through the company's Retail and Digital channels. It has three product categories namely; Diapers and Wipes, Skin and Personal Care, and Household and Wellness, out of which the majority of its revenue is generated from the sale of diapers and wipes. The company operates only in the United States.
Financial Insights: Honest Co
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Honest Co's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.8% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: Honest Co's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.35% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.84%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Honest Co's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.27% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.11, Honest Co adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Honest Co visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
