Natural food company Hain Celestial (NASDAQ: HAIN) will be announcing earnings results this Monday morning. Here’s what investors should know.
Hain Celestial missed analysts’ revenue expectations last quarter, reporting revenues of $338.4 million, down 13.3% year on year. It was a slower quarter for the company, with a slight miss of analysts’ EBITDA estimates.
Is Hain Celestial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hain Celestial’s revenue to decline 26% year on year, a further deceleration from the 13.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hain Celestial has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hain Celestial’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. J. M. Smucker delivered year-on-year revenue growth of 5%, beating analysts’ expectations by 4.3%, and Hershey reported revenues up 6.6%, topping estimates by 5.7%. J. M. Smucker traded up 5.1% following the results while Hershey was down 4.8%.
Read our full analysis of J. M. Smucker’s results here and Hershey’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the shelf-stable food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.3% on average over the last month. Hain Celestial is up 8% during the same time and is heading into earnings with an average analyst price target of $1.33 (compared to the current share price of $0.63).
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