2023-06-12 15:16:22 ET
Honest Co. ( NASDAQ: HNST ) was one of the leading gainers in the consumer discretionary sector on Monday in a bounce off the retailer's recent all-time low of $1.40. The consumer goods stock is still swapping hands below where it traded before the Q1 earning report was released and is off more than 40% on a year-to-date basis.
Telsey Advisory Group recently called Honest Co.'s ( HNST ) Q1 revenue tally and full-year outlook encouraging, with the update seen reflecting the brand's positioning in an attractive health and wellness category that appeals to the modern conscious consumer with a strong digital presence. However, analyst Dana Telsey warned the timing and scope of the HNST's transformation initiative benefits may be disappointing to investors relative to the scale of the company's EBITDA losses.
Honest Co. ( HNST ) has missed consensus EPS estimates in seven straight quarter and reported a loss for every one of those quarters, which has led to questions about the profitability timelines.
Shares of Honest Company ( HNST ) rose 10.15% in afternoon trading on Monday to $1.66 vs. the 52-week trading range of $1.40 to $1.52. Short interest on HNST stands at 6.19% of total float.
More on Honest Company:
- The Honest Company: Running Out Of Options
- Honest Company Q1 earnings call transcript
- Honest Company compared to sector peers
- Seeking Alpha's Quant Rating for Honest Company
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Honest Company gains 10% in comeback bid from recent 52-week low