Honest Company, Inc. (HNST) is ready to report earnings on August 12. Here's a few things you should know about before they make the announcement.
Analysts think we'll see Honest Company, Inc. check in with an EPS (earnings per share) of -$0.09 on Friday. Over the last 90 days, analysts have lowered estimates 3 times and raised them 1 times, possibly implying analysts favoring a more pessimistic view in their analysis.
HNST bulls will first be listening for news that the company beat the analysts' estimates. After that they'll want to hear that the company beat these expectations with robust revenues that were higher than expected. Finally they'll want to hear about a positive growth story that helps analysts frame the company's future as one of growth in the following quarters.
HNST bears will be waiting to hear two things. The first is that the reported EPS underperformed the estimates of analysts. The stock will usually fall on that news, but not always. The second is that the report outlines a negative growth story for the stock in the coming quarters.
Whether you're a bear or bull you'll want to be aware that occasionally a stock's price movement is caused by the analysts' estimates changing from the Q&A call with management, rather than from the earnings report itself. As you see more of these, you'll begin to notice patterns in the runup and rundown of the stock's price.
Shares of HNST were trading at $3.55 as of August 04. Over the last 52-weeks, shares are down -75.0%. A larger percentage here can mean investors have a stronger bullish or bearish outlook on the stock.