The Hain Celestial Group Earnings: Here’s Why the Stock is Selling Off
The Hain Celestial Group, Inc. (NASDAQ:HAIN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.3%.
The Hain Celestial Group, Inc. Earnings Cheat Sheet
Results: Net income increased 57.68% to $31.6 million (72 cents per diluted share) in the quarter versus a net gain of $20.04 million in the year-earlier quarter.
Revenue: Rose 18.09% to $455.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: The Hain Celestial Group, Inc. reported adjusted net income of 72 cents per share. By that measure, the company beat the mean analyst estimate of $0.69. It missed the average revenue estimate of $473.44 million.
Quoting Management: “I am extremely pleased with our results as Hain Celestial US delivered 9.4% top-line growth on a comparable basis as well as increased profitability during the second quarter. In the UK, Hain Daniels, with the addition of the ambient grocery brands for two months of the quarter, focused on higher margin brand growth while evaluating and establishing a program to eliminate certain unprofitable private label sales. At the same time our businesses in Canada and Europe delivered profitable growth,” said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. “As we have previously discussed, a major investment in our Fakenham facility is underway, where we are repositioning our meat-free frozen foods plant to be ready for the commencement of a long-term program with a major retailer later this year. Brands acquired during the quarter also contributed to our results, including Hartley’s® jam and Sun-Pat® peanut butter, each of which are No. 1 in their respective categories in the United Kingdom,” concluded Irwin Simon.