====Honest Company (HNST) reported earnings on Thur 24 March 22 (a/h)

 

Honest Company misses by $0.03, misses on revs; guides Q1 revs below consensus; guides FY22 revs below consensus

• Reports Q4 (Dec) loss of $(0.10) per share, $0.03 worse than the S&P Capital IQ Consensus of ($0.07); revenues rose 3.2% year/year to $80.38 mln vs the $84.59 mln S&P Capital IQ Consensus.
• Co issues downside guidance for Q1, sees Q1 revs being down 15% yr/yr, which we calculate as approx $69 mln vs. $91.39 mln S&P Capital IQ Consensus.
  • Co notes that growth in its core product categories - Diapers and Wipes, and Skin and Personal Care -- is expected to be in the mid-single digits following Q1, driven by product innovation and distribution gains with a number of new strategic retail partners.
  • The Household and Wellness product category is expected to face continued headwinds due to reduced consumer demand for COVID-related sanitizing and disinfecting products. Co plans to pivot toward new margin-accretive innovation in the wellness category, which is expected to be in market mid-year.
• Co guides to revenue for Q2-Q4 being up mid-single digits yr/yr. 
• Co issues downside guidance for FY22, sees FY22 revs being flat yr/yr, which means guidance of approx $319 mln vs. $366.81 mln S&P Capital IQ Consensus.