
Honest Co (HNST) Stock Forecast & Price Target
Honest Co (HNST) Analyst Ratings
Bulls say
Honest Co Inc. has demonstrated significant financial improvement, with gross margins expanding substantially to 38.8%, surpassing consensus expectations and benefiting from cost reductions and volume growth. The company’s total revenue for the fourth quarter reached $99.2 million, reflecting a 10.6% year-over-year growth and outpacing market predictions, marking the highest quarterly revenue in its history. Additionally, Honest Co's operating margin improved notably to 0.1%, indicating effective cost management and potential for future profitability as household penetration continues to increase.
Bears say
The Honest Co Inc experienced a significant increase in operating expenses, which rose by 760 basis points year-over-year to 39.9% of sales, surpassing both internal estimates and consensus expectations. The company's operating margin contracted by 230 basis points to (1.0%), with projections indicating further deterioration to (1.6%), diverging from the consensus estimate of a stable 0.0%. Additionally, the anticipated decline in EBITDA margin to 4.4% reflects a broader trend of margin pressure, compounding concerns over profitability amidst a 2% decline in comparable categories.
This aggregate rating is based on analysts' research of Honest Co and is not a guaranteed prediction by Public.com or investment advice.
Honest Co (HNST) Analyst Forecast & Price Prediction
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