The Honest Company (HNST 1.67%) has quietly emerged as one of 2024's best-performing stocks, surging 118% year to date, compared to the S&P 500's 23.5% gain. This impressive performance reflects a dramatic turnaround in the company's fundamental business metrics, yet the stock may still have significant room to run.This growth story is just beginning. The Honest Company's $726 million market cap represents a tiny fraction of the $550 billion-plus personal-care market, suggesting substantial upside potential ...

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Honest (HNST) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Honest is a member of our Consumer Discretionary group, which includes 270 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of th ...

The Honest Company, Inc. (HNST) reported solid third-quarter 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.The Honest Company reported impressive double-digit revenue growth, hitting an all-time high in sales, alongside a significant expansion in gross margin. The company's strategic focus on its transformation pillars, brand maximization, margin enhancement and operating discipline has been key to its success. The better-than-expected third-q ...

Financial Data and Key Metrics Changes - The Honest Company achieved its highest quarterly revenue in history with $99 million in sales, representing a 15% year-over-year increase [7][26] - Gross margin expanded to 39%, an increase of 710 basis points compared to the same period last year [7][30] - Adjusted EBITDA was $7 million, marking the fourth consecutive quarter of positive adjusted EBITDA [8][35] Business Line Data and Key Metrics Changes - Strong performance was noted in the baby products and wipes portfolios, contributing to the overall revenue growth [26] - Retail tracked channel consumption grew 9% year-over-year, while Amazon consumption increased by 19% [9][26] Market Data and Key Metrics Changes - Honest's portfolio outperformed the personal care sector, which saw a 2% decline in consumption [9] - Household penetration among Honest users reached 6.7%, an increase of 23 basis points year-over-year [18] Company Strategy and Development Direction - The company focuses on brand maximization, margin enhancement, and operating discipline as transformation pillars [7] - There is a strategic intent to expand distribution, particularly in the dollar store segment, where Honest currently has no presence [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of consumption trends, supported by strong household penetration and repeat purchase rates [64][66] - The company raised its full-year revenue guidance to high single-digit percentage growth and adjusted EBITDA guidance to $20 million to $22 million [38][40] Other Important Information - The company is actively monitoring potential tariff impacts on its wipes sourced from China and is preparing for diversification of sourcing [76][78] - Marketing expenses increased to $13 million, reflecting a balanced approach to brand awareness and consumer engagement [34] Q&A Session Summary Question: Impact of shipment benefits on the quarter - Management indicated that approximately 3 to 4 percentage points of revenue growth were attributed to inventory supplied for retail events [46] Question: Confidence in marketing investments for growth - Management expressed comfort in increasing marketing spend to drive brand awareness and trial, noting positive results in household penetration [50] Question: Opportunity in the Dollar Store segment - Management highlighted a growth strategy focused on distribution, noting that there is significant runway for expansion in the dollar channel [55] Question: Sustainability of consumption trends - Management indicated strong underlying fundamentals for consumption, driven by unit growth and increased basket sizes [64][66] Question: Gross margin sustainability - Management confirmed that gross margin improvements are structural and sustainable, with ongoing efforts to reduce product costs [67][69] Question: Amazon Prime Day effectiveness - Management noted that Prime Day attracts both loyal customers and new-to-brand shoppers, enhancing brand awareness [72][74] Question: Exposure to China sourcing - Management is actively working on plans for diversification and cost reductions in response to potential tariffs on wipes sourced from China [76][78] Question: Gross margin lift from price mix benefits - Management clarified that the gross margin increase was primarily due to cost savings rather than pricing [81]

Honest (HNST) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.03. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this consumer products company would post a loss of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of 20%.Over the last four quarters, the company has surpa ...

Core Insights - The Honest Company reported record revenue of $99 million for Q3 2024, a 15% increase from $86 million in Q3 2023, driven by strong performance in baby products and wipes [1][3] - The company achieved positive net income of $165 thousand, an increase of $8 million from a net loss of $8 million in the prior year quarter [1][6] - Gross margin expanded by 710 basis points to 38.7% compared to 31.6% in the previous year, attributed to cost efficiencies in supply chain and product costs [1][4] - The company raised its full-year 2024 revenue and adjusted EBITDA outlook based on strong performance in the first three quarters [1][10] Financial Performance - Revenue for the three months ended September 30, 2024, was $99,237 thousand, up from $86,169 thousand in the same period last year, reflecting a 15.2% increase [3] - Gross margin for Q3 2024 was 38.7%, compared to 31.6% in Q3 2023, marking a significant improvement of 710 basis points [3][4] - Operating expenses increased by $3 million to $38,339 thousand, but as a percentage of revenue, they decreased by 221 basis points [5] - Adjusted EBITDA was positive at $7,079 thousand compared to a negative $1,056 thousand in Q3 2023, indicating the fourth consecutive quarter of positive adjusted EBITDA [8] Outlook - The company anticipates high single-digit percentage growth in revenue for the full year 2024, an increase from the previous mid-to-high single-digit growth forecast [7] - Adjusted EBITDA outlook for 2024 has been raised to a range of $20 million to $22 million, up from the previous range of $15 million to $18 million [7] Balance Sheet and Cash Flow - As of September 30, 2024, the company had $53 million in cash and cash equivalents, a sequential increase of $17 million from Q2 2024 and an increase of $30 million compared to Q3 2023 [9] - The company reported net cash provided by operating activities of $18 million for the first nine months of 2024, compared to $9 million in the prior year period [9]

Core Insights - The Honest Company achieved record revenue of $93 million in Q2 2024, representing a 10% increase compared to Q2 2023, driven by strong performance in baby products and wipes [1][3][9] - The company reported a gross margin of 38.3%, an increase of 1,120 basis points from 27.1% in the same quarter last year, attributed to improvements in cost structure and pricing strategies [4][5] - The company has raised its full-year 2024 revenue and adjusted EBITDA outlook based on better-than-expected performance in the first half of the year [9][10] Financial Performance - Revenue for Q2 2024 was $93,049 thousand, up from $84,544 thousand in Q2 2023, marking an increase of $8,505 thousand [3] - Gross profit for Q2 2024 was $35,612 thousand, compared to $22,898 thousand in Q2 2023 [18] - Operating expenses increased to $39,657 thousand from $36,285 thousand year-over-year, but as a percentage of revenue, they decreased by 30 basis points [5][19] - The net loss for Q2 2024 was $4,077 thousand, significantly improved from a net loss of $13,416 thousand in Q2 2023 [5][18] Adjusted EBITDA - Adjusted EBITDA for Q2 2024 was $7,595 thousand, a turnaround from a negative $4,099 thousand in Q2 2023, marking the third consecutive quarter of positive adjusted EBITDA [6][31] - The company expects adjusted EBITDA for the full year 2024 to be in the range of $15 million to $18 million, an increase from previous expectations [7][9] Balance Sheet and Cash Flow - As of June 30, 2024, the company had $37 million in cash and cash equivalents, an increase of $19 million compared to the same period in 2023, with no debt on the balance sheet [8][21] - Net cash provided by operating activities was $3 million for Q2 2024, slightly down from $4 million in Q2 2023 [8][26] Market Position and Strategy - The Honest Company focuses on clean and sustainably-designed personal care products, with a commitment to brand maximization, margin enhancement, and operating discipline [2][17] - The company has seen a 7% growth in tracked channel consumption, while comparative categories experienced a decline of 0.3% [3][4]

For Immediate Release Industry: Consumer Discretionary Chicago, IL – June 14, 2024 – Today, Zacks Equity Research discusses Reynolds Consumer Products Inc. (REYN) , Central Garden & Pet Co. (CENT) , The Honest Company, Inc. (HNST) and Lifetime Brands, Inc. (LCUT) . Link: https://www.zacks.com/commentary/2287761/4-stocks-to-watch-in-a-promising-consumer-productsdiscretionary-industry The Consumer Products-Discretionary industry looks promising amid gradually easing inflation and evolving consumer preferences ...

Shares of Honest (HNST) have been struggling lately and have lost 8.8% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road. The formation of a hammer pattern is considered a technical indication of nearing a bottom with likely subsiding of selling pressure. But this is not the only factor that makes a bullish case for the sto ...

Honest (HNST) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 87.50%. A quarter ago, it was expected that this consumer products company would post a loss of $0.08 per share when it actually produced earnings of $0.01, delivering a surprise of 112.50%.Over the last four quarters, the company ...