The Honest Company (HNST) Q4 Earnings: What To Expect

Personal care company The Honest Company (NASDAQ:HNST) will be announcing earnings results tomorrow after market hours. Here's what to look for.

Last quarter The Honest Company reported revenues of $86.17 million, up 1.9% year on year, beating analyst revenue expectations by 4.8%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.

Is The Honest Company buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The Honest Company's revenue to grow 2.8% year on year to $84.14 million, improving on the 1.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at The Honest Company's peers in the personal care segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Inter Parfums delivered top-line growth of 5.8% year on year, beating analyst estimates by 1.5% and Edgewell Personal Care reported revenues up 4.2% year on year, exceeding estimates by 1.6%. Both companies (Inter Parfums and Edgewell Personal Care) traded flat on the results.

Read our full analysis of Inter Parfums's results here and Edgewell Personal Care's results here.

There has been positive sentiment among investors in the personal care segment, with the stocks up on average 2.5% over the last month. The Honest Company is up 6.8% during the same time, and is heading into the earnings with analyst price target of $2.7, compared to share price of $3.03.

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