Why The Honest Company Plunged 30% at the Open Today
Shares of The Honest Company (NASDAQ: HNST), a consumer staples maker that operates in the personal care, beauty, baby, and household products spaces, fell dramatically at the open of trading on Friday, losing as much as 30% of the value in the first few minutes of the market day. The big news was the company's Thursday earnings release, which hit the market after it had closed that day. Investors were not pleased.
At first blush, The Honest Company's fourth-quarter 2021 results weren't all that bad. Sales came in at $80.4 million, up 3% versus the $77.9 million it recorded in the same quarter of 2020. In 2019, prior to the coronavirus pandemic, Q4 revenue was $63.8 million, with the current period representing a 26% increase over that figure. Clearly, the company is still growing, even after taking into account the temporary pandemic-driven demand boost in 2020. On the bottom line, The Honest Company reported a Q4 2021 loss of $0.10 per share, which was an improvement over the loss of $0.37 per share in the comparable quarter in 2020. So far, there's not too much to be upset about, noting that the company, with a market cap of just $400 million or so, is still a small and growing name.
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Source Fool.com
