Jessica Alba's Honest Co surges after swinging to Q4 profit

Honest

07/03/2024 15:08

(Updates)
    ** Shares of baby and personal care products maker Honest
Company  HNST.O  up as much as 55.2% at $4.89 - highest since
April 2022
        ** If gains hold, stock on track for best day ever
  
    ** Co logs surprise profit after markets closed on
Wednesday, owing to growth in digital channel, volume and
benefits from price increases
    ** Co reports Q4 income per share of 1 cent vs. year ago
loss of 14 cents per share; analysts estimated loss of 7 cents
per share 
    ** HNST posts Q4 rev of $90.3 mln, up 10% year-over-year vs.
the average estimates of four LSEG analysts of $84.14 mln
    ** Co's household and wellness segment increased 28%, driven
by strong performance in baby clothing business
    ** Co expects FY24 to benefit from its brand maximization,
margin enhancement and operating discipline initiatives
    ** Sees annual rev growth of low-to-mid single digit
percentage
    ** Co's results reflect brand's positioning in an attractive
category that appeals to modern, conscious consumer with a
strong digital presence - Dana Telsey, analyst with Telsey
Advisory Group
    ** In 2023, stock rose nearly 10%
    

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))