The Honest Company's (HNST) Shares Plunge 20% on Q4 Miss

The Honest Company Inc. (NASDAQ: HNST) shares dropped around 20% after-hours following the company’s Q4 results, with EPS of ($0.10) coming in worse than the consensus estimate of ($0.06).

Revenue grew 3% year-over-year to $80.4 million, compared to the consensus of $84.59 million, primarily due to strong volume growth in Skin and Personal Care and Diapers and Wipes product categories, partially offset by a decline in the Household and Wellness product category as a result of lower COVID-19 related consumer demand for sanitizing and disinfecting products.

The company provided its full 2022-year outlook, expecting revenue to be approximately flat compared to 2021. The company expects Q1 revenue to decline approximately 15% year-over-year, and subsequent three quarters to see mid-single digit growth year-over-year.

By Davit Kirakosyan

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