What happened to the Honest Company?
Shares of The Honest Company ( NASDAQ:HNST) got destroyed Friday after the recently IPO'd maker of environmentally conscious personal care, beauty, baby, and household products missed earnings in its Q2 2021 financial report this morning.
Is the Honest Company's IPO overvalued?
The company has never turned a profit and faces competition from well-established competitors, he said. Sign up here for our daily newsletter, 10 Things Before the Opening Bell. The Honest Company's IPO is overvalued, according to David Trainer, CEO of investment research firm New Constructs.
Are the Honest Company's shares priced for revenue growth?
Using New Constructs' cash flow projection models, he found that the company's shares are priced for revenue growth that outpaces the projected growth of its target markets. The Honest Company is set to begin trading on the Nasdaq under the ticket "HNST" Wednesday afternoon.
Is the Honest Company's Path to profitability difficult?
According to Trainer, The Honest Company's path to profitability would be difficult. Using New Constructs' cash flow projection models, he found that the company's shares are priced for revenue growth that outpaces the projected growth of its target markets.
Why is Honest stock down?
brand body lotion. Honest Co. plunged more than 20% in early trading after the consumer-goods company issued a disappointing forecast for revenue, triggering the first ratings downgrades for the stock since its IPO in May 2021.
Is Honest Company stock a good buy?
Out of 6 analysts, 0 (0%) are recommending HNST as a Strong Buy, 1 (16.67%) are recommending HNST as a Buy, 4 (66.67%) are recommending HNST as a Hold, 1 (16.67%) are recommending HNST as a Sell, and 0 (0%) are recommending HNST as a Strong Sell.
Whats going on with Honest Company?
The Honest Company is expecting revenue for the first quarter of the year to come in 15% lower than what was reported in Q1 2021. It's looking for mid-single-digit growth in the three following quarters. The poor earnings report from The Honest Company brings with its heavy trading of HNST stock.
Is Honest Company a buy or a sell?
Honest has received a consensus rating of Hold. The company's average rating score is 2.44, and is based on 5 buy ratings, 3 hold ratings, and 1 sell rating.
Will honest company pay dividends?
HONEST COMPANY (NASDAQ: HNST) does not pay a dividend.
How much is Jessica Alba worth?
Alba's net worth had ballooned to an estimated $340 million, and an IPO seemed on the horizon.
Does Jessica Alba own honest?
Actress turned entrepreneur Jessica Alba co-founded the nontoxic-household-goods startup The Honest Company in 2011. The business began largely as an e-commerce subscription service for diapers and baby wipes but now sells over 100 products. Honest raised $100 million at a $1.7 billion valuation in 2015.
What percent of honest co Does Jessica Alba own?
According to the company's most recent SEC filings, Jessica owns approximately 5.65 million shares of HNST. That's roughly 4.8% of the company, which is a far cry from the roughly 30% she owned a few years back.
Who owns The Honest Company now?
Jessica AlbaJessica Alba opens up about building her $550 million The Honest Company: 'There were no expectations for me to be successful'
Will HNST stock go up?
The 7 analysts offering 12-month price forecasts for Honest Company Inc have a median target of 4.00, with a high estimate of 12.00 and a low estimate of 3.00. The median estimate represents a +49.81% increase from the last price of 2.67.
Is honest company sustainable?
The Honest Company has announced a new Sustainable Packaging Initiative—and redesigned its packaging to give its beauty lines a new look. In addition, all of its cartons are now recyclable, and made using 100% 'tree-free' paper made from upcycled sugarcane by-product.
Is honest co ethical?
The company's standards feature a “No List,” which includes 2,500 chemicals that The Honest Company declines to include in its products, as well as a commitment to partner with safe and transparent manufacturers, among other measures. These ethical practices give The Honest Company a competitive advantage, Alba said.
What happened
Shares of The Honest Company ( HNST -3.81% ) got destroyed Friday after the recently IPO'd maker of environmentally conscious personal care, beauty, baby, and household products missed earnings in its Q2 2021 financial report this morning.
So what
The Honest Company's sales grew only 3% year over year in Q2, whether compared to either 2019 or 2020 figures, underperforming expectations. Gross profit margins contracted by 1 full percentage point, while marketing costs jumped 32% and selling, general, and administrative spending more than doubled.
Now what
That might be exactly what investors are afraid of. With The Honest Company declining to give specific guidance in its earnings report -- but apparently promising more of the same underperformance -- investors are selling the stock in droves today, and I can't say I blame them.
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What happened
Shares of The Honest Company (NASDAQ: HNST) got destroyed Friday after the recently IPO'd maker of environmentally conscious personal care, beauty, baby, and household products missed earnings in its Q2 2021 financial report this morning.
So what
The Honest Company's sales grew only 3% year over year in Q2, whether compared to either 2019 or 2020 figures, underperforming expectations. Gross profit margins contracted by 1 full percentage point, while marketing costs jumped 32% and selling, general, and administrative spending more than doubled.
Now what
That might be exactly what investors are afraid of. With The Honest Company declining to give specific guidance in its earnings report -- but apparently promising more of the same underperformance -- investors are selling the stock in droves today, and I can't say I blame them.
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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community.
What is the Honest Company?
Shares of The Honest Company (NASDAQ: HNST), a company that makes chemical-free diapers, cosmetics, and other household products, fell on Thursday after the company released financial results for the first quarter of 2021.
How much did Honest make in the first quarter of 2020?
In the first quarter, Honest generated revenue of $81 million, up 12% from the $72 million it generated in the first quarter of 2020. However, the company registered a net loss of $4.5 million compared to a better than $0.5 million profit last year. Wall Street's reaction to this was mixed.
Honest Company Earnings
Estimates: Wall Street expects The Honest Company to lose 6 cents per share, according to FactSet. Revenue was expected to come in at $79.3 million.
Honest Company Stock
The Honest Company stock dropped 1.4% late after closing down 3.45% at 17.65 in the stock market today, forming an IPO base with a buy point of 23.98. Shares have a Composite Rating of 31. Their EPS Rating is 16.
The Honest Company, Inc. - Hold
Zacks' proprietary data indicates that The Honest Company, Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the HNST shares relative to the market in the next few months. In addition, The Honest Company, Inc.
Style Scorecard
The Zacks Equity Research reports, or ZER for short, are our in-house, independently produced research reports.
Chart for HNST
The Honest Company is a digitally-native, mission-driven brand focused on leading the clean lifestyle movement, creating a community for conscious consumers and seeking to disrupt multiple consumer product categories. They have been dedicated to developing clean, sustainable, effective and thoughtfully designed products.
