The Hain Celestial Group Fourth Quarter Earnings Sneak Peek

The Hain Celestial Group, Inc. (NASDAQ:HAIN) will unveil its latest earnings on Wednesday, August 22, 2012. Hain Celestial Group manufactures, markets, distributes and sells natural and organic specialty and snack food products and natural personal care products.

The Hain Celestial Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 45 cents per share, a rise of 28.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $1.80 per share, a rise of 33.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting profit of 54 cents per share against a mean estimate of net income of 50 cents per share.

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A Look Back: In the third quarter, profit rose 43.7% to $24.1 million (52 cents a share) from $16.8 million (38 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 31.5% to $379.4 million from $288.4 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 25.2% in revenue from the year-earlier quarter to $365.6 million.

Stock Price Performance: Between July 19, 2012 and August 16, 2012, the stock price dropped $2.31 (-4.1%), from $56.68 to $54.37. The stock price saw one of its best stretches over the last year between January 5, 2012 and January 19, 2012, when shares rose for 10 straight days, increasing 8% (+$2.75) over that span. It saw one of its worst periods between July 17, 2012 and July 24, 2012 when shares fell for six straight days, dropping 8.4% (-$4.85) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 27% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 28.5% in the first quarter and 23.2% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.21 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.11 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 6.5% to $477.9 million while liabilities rose by 1.8% to $216.4 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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