The Honest Company Inc. (NASDAQ:HNST) shares are trending on Thursday.
Shares of the California-based digital-first consumer goods company surged 10.13% to $4.24 in after-hours trading on Wednesday following stronger-than-expected second-quarter results, where earnings per share of $0.04 topped the analyst expectation of $0.02 by 100%.
The Honest Company announced results for the quarter ended Jun. 30.
Shares Surge as Margins Expand and Profitability Improves
Revenue for the company came in at $83.30 million, beating the estimated $77.76 million by 7.12%. The revenue represents a 10.9% fall over the year.
The personal care company reported Organic Revenue growth of 6.7% to $80.2 million.
Net income came in at $10.7 million, while gross margin expanded 800 basis points to 48.4%.
CEO Carla Vernon said, “For the second quarter we delivered accelerated Organic Revenue growth of 7% and record underlying margins.” She added that consumption growth of nearly 8% points to durable momentum across the company’s fastest-growing, most profitable platforms.
Raised Guidance Signals Confidence
The Honest Company raised its full-year 2026 outlook, now projecting revenue of $319 million to $325 million and Adjusted EBITDA of $23 million to $25 million.
The company held $105.9 million in cash with no debt as of Jun. 30, after repurchasing 5.6 million shares for $18.7 million during the first half of the year.
Trading Metrics, Technical Analysis
The Honest Company has a market capitalization of approximately $423.80 million. Its stock has traded between a 52-week high of $4.68 and a 52-week low of $2.07.
HNST has a Relative Strength Index (RSI) of 54.05.
Over the past 12 months, the small-cap stock has fallen by 14.82%.
Currently, HNST is trading at 68.2% of its 52-week trading range, indicating that it is closer to its annual high.
Price Action: The stock closed the regular session on Wednesday at $3.85, down 1.03%, according to Benzinga Pro data.
With a strong Momentum score in the 77th percentile, Benzinga’s Edge Stock Rankings indicate that HNST stock has a positive price trend across all time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: IncrediVFX on Shutterstock
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