Why Is The Honest Company (HNST) Stock Soaring Today
What Happened:
Shares of personal care company The Honest Company (NASDAQ:HNST)
jumped 33.9% in the pre-market session after the company reported fourth-quarter results that blew past analysts’ revenue, adjusted EBITDA and EPS expectations. The market was expecting negative EBITDA, but the company delivered positive EBITDA. Full year 2024 guidance for revenue calls for “low-to-mid single digit percentage” revenue growth and “positive low-single digit to mid-single digit millions adjusted EBITDA”, which is encouraging. Even better news is that beyond 2024, this algorithm will improve to 4% to 6% annual revenue growth and continued adjusted EBITDA margin expansion. Zooming out, we think this was an impressive quarter that should delight shareholders.
Is now the time to buy The Honest Company? Find out by reading the original article on StockStory.
What is the market telling us:
The Honest Company’s shares are quite volatile and over the last year have had 53 moves greater than 5%. But moves this big are very rare even for The Honest Company and that is indicating to us that this news had a significant impact on the market’s perception of the business.
The Honest Company is up 19.4% since the beginning of the year. Investors who bought $1,000 worth of The Honest Company’s shares at the IPO in May 2021 would now be looking at an investment worth $165.62.
