The Honest Company (NASDAQ:HNST) shares skyrocketed after the Jessica Alba-backed personal care, beauty, and baby consumer goods company posted a third-quarter earnings beat and raised its full-year guidance.
Its shares added 33.3% at US$1.60 in early trade on Thursday.
The Honest Company (NASDAQ:HNST) narrowed its 3Q loss per share from $0.13 to $0.09, ahead of Wall Street estimates of a loss per share of $0.11.
Revenue grew 2% year over year to $86 million, a record for the company on strong retail consumption, growth in its digital channel, strong baby clothing performance, and the benefits of price increases.
“Revenue in the third quarter was an all-time record and we delivered our highest gross margin in the last two years, contributing to another quarter of positive operating cash flow,” The Honest Company (NASDAQ:HNST) CEO Carla Vernón said in a statement.
“The rigor we’re applying across the business, reflected in well-executed pricing, cost savings initiatives, and disciplined portfolio management, provides us positive momentum as we finish the fiscal year.”
The company also raised its full-year revenue outlook, now expecting revenue to grow in the mid-single to high-single digits, up from its prior forecast of a low-single to mid-single increase over 2022.
The Honest Company also now expects full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of negative $15 million to negative $18 million, an improvement from its prior guidance range of negative $22 million to negative $26 million.
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