Factors to Know Before Hain Celestial's (HAIN) Q2 Earnings
The Hain Celestial Group, Inc. HAIN is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2021 numbers on Feb 9, before market open. Although the Zacks Consensus Estimate for second-quarter earnings has declined by a penny to 28 cents in the past 30 days, the same suggests growth of more than 64% from 17 cents delivered in the year-ago quarter. Moreover, the consensus estimate for quarterly revenues stands at $521.6 million, which indicates an increase of 2.9% from the year-ago quarter.
In the last reported quarter, the company delivered an earnings surprise of 50%. Notably, this organic- and natural-products company delivered an earnings surprise of 24.6%, on average, in the trailing four quarters.
Key Factors to Note
Hain Celestial’s second-quarter performance is likely to have benefited from its transformation strategy. The strategy is aimed at simplifying portfolio, identifying additional areas of productivity, driving top-line growth and improving cash flow. Moreover, well-chalked innovation plans, marketing and assortment optimization efforts have been supporting the company’s top line. Encouragingly, Hain Celestial is gaining from sales growth across the North America and the International segments. In North America, the company’s Get Bigger Brands have been doing well. Markedly, the company has been witnessing increase in consumption of products like tea, yoghurt and snacks alongside personal care products. Its International segment is witnessing growth in areas like non-diary beverages and plant-based proteins.
Management at its first-quarter earnings release had projected mid-single digit sales growth at constant currency after adjusting for divestitures and discontinued brands for the fiscal second quarter. In addition, the company is committed toward making investments in key brands, while simultaneously exiting non-core assets to focus more on high-growth areas. The recent divestiture of its ailing U.K. fruit business, including the Orchard House Foods Limited operations and associated brands, might have boosted performance.
In addition, supply-chain productivity efforts and higher product mix from rationalization efforts have been driving margins. Also, it is on track with boosting automation in plants, rightsizing infrastructure, redesigning engineered products and optimizing pricing. Management had earlier estimated gross margin to rise considerably in the fiscal second quarter and higher adjusted EBITDA versus growth in the second half of the prior year.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Hain Celestial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Hain Celestial Group, Inc. Price and EPS Surprise
The Hain Celestial Group, Inc. price-eps-surprise | The Hain Celestial Group, Inc. Quote
Although Hain Celestial has a Zacks Rank #2, its Earnings ESP of -1.18% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Snap-on SNA has an Earnings ESP of +1.21% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Yum Brands YUM has an Earnings ESP of +1.62% and a Zacks Rank #2.
YETI Holdings YETI has an Earnings ESP of +6.91% and a Zacks Rank #3.
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