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How Did Hain Celestial’s Stock React to Fiscal 3Q16 Results?

Sue Miller

Did Hain Celestial Group’s Earnings Rise in Fiscal 3Q16?

(Continued from Prior Part)

Stock price performance

The Hain Celestial Group (HAIN) reported its fiscal 3Q16 results on May 4, 2016. The stock rose 9% with a high trading volume, closing at $44.89 as compared to $41.09 in the previous day’s trading session. This came on the back of an exceptional quarter with a rise in earnings and revenue. Revenue surpassed estimates, while earnings were just in line with expectations. Hain Celestial also updated its previously announced guidance for fiscal 2016.

On May 5, Jefferies raised its target price for HAIN from $50 to $55. The group maintained its “buy” rating. This benefited the stock further, and it rose 4% to $46.50 on May 6. The stock rose another 4% and closed at $48.13 on Monday, May 9.

As of May 9, the stock has gained 30% since its previous earnings release on February 1. Hain Celestial’s stock fell by 29% in 2015. However, it has risen by 21% so far in 2016. It outperformed the Market, as represented by the S&P 500 Index, by 19% on May 9.

Peers in the industry

Hain Celestial is based in Lake Success, New York. Hain Celestial is a part of the food industry. It has a market cap of $4.4 billion. Along with its subsidiaries, it manufactures, markets, distributes, and sells organic and natural products. Its peers in the industry include Cal-Maine Foods (CALM), Kraft Heinz Company (KHC), and McCormick & Company (MKC).

So far in 2016, CALM has returned 3%, KHC has returned 16%, and MKC has returned 15%. Cal-Maine Foods, Kraft Heinz Company, and McCormick & Company closed trade at $49, $84.26, and $96.99, respectively, on May 9. The First Trust NASDAQ-100 Ex-Technology Sector Index Fund (QQXT) and the First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) invest 1.5% and 1.0% of their respective portfolios in Kraft Heinz.

In the next part of this series, we’ll look at analysts’ recommendations for Hain Celestial.

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