Factors to Note Ahead of Hain Celestial's (HAIN) Q4 Earnings
The Hain Celestial Group, Inc. HAIN is likely to register a top-line decline but a bottom-line increase when it reports fourth-quarter fiscal 2023 earnings on Aug 24. The Zacks Consensus Estimate for quarterly revenues is pegged at $440.6 million, indicating a decline of 3.6% from the year-ago quarter’s actuals.
The consensus mark for fiscal fourth-quarter earnings has been stable at 11 cents in the past 30 days, suggesting an increase of 37.5% from the year-ago quarter’s figure.
The organic and natural products company has a trailing four-quarter negative earnings surprise of 19.4%, on average. HAIN delivered a negative earnings surprise of 50% in the last reported quarter.
The Hain Celestial Group, Inc. Price and EPS Surprise
The Hain Celestial Group, Inc. price-eps-surprise | The Hain Celestial Group, Inc. Quote
Things to Note
Hain Celestial has been grappling with weakness in its North America segment, owing to lower sales in snacks, personal care and tea products. Lower distribution and customer promotions across the snacks category and challenges with the ParmCrisps brand might have hurt the segment’s performance in the fourth quarter of fiscal 2023. Its tea business is likely to have exited fiscal 2023 with a decline in high single digits due to category softness and a pullback in marketing and brand-building support. We expect the North America segment to generate net sales of $279.2 million in the fiscal fourth quarter, indicating a decline of 6% year-over-year.
The company has also been witnessing inflation in raw materials, elevated energy expenses and a fixed-cost deleverage. The company has also been subject to high labor rates, which might have dragged down its profitability in the quarter.
However, the company’s effective pricing and productivity actions, along with supply chain improvements, are likely to have boosted its margins in the to-be-reported quarter. We expect an adjusted gross margin of 22.5% in the quarter, reflecting a year-over-year improvement of 310 basis points.
For fiscal 2023, HAIN expects adjusted net sales to decline 3-4% year over year and adjusted EBITDA (at constant currency) to fall 13-15%. For the fiscal fourth quarter, HAIN projects adjusted net sales, on a consolidated basis, to decline in low single-digit percentage year over year. Management anticipates adjusted EBITDA (at constant currency) in the band of $40-$44 million in the quarter, which is in line with our estimate.
The company’s international presence also keeps it exposed to unfavorable currency fluctuations.
That said, the company’s international segment is likely to have performed well in the to-be-reported quarter, driven by strength in the U.K. snacking business and Europe’s non-dairy business. Our estimate for net sales from the international segment is pegged at $165.1 million, suggesting growth of 3.1% year-over-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.
Hain Celestial carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies that, according to our model, have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Kenvue Inc. KVUE currently has an Earnings ESP of +2.06% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kenvue’s third-quarter fiscal 2023 revenues is pegged at $3.9 billion. The Zacks Consensus Estimate for the quarterly EPS of 32 cents has been stable in the past 30 days. KVUE has an earnings surprise of 10.3% in the last reported quarter.
The Kraft Heinz Company KHC currently has an Earnings ESP of +0.01% and a Zacks Rank #3. KHC is likely to register a bottom-line increase when it reports its third-quarter 2023 earnings. The Zacks Consensus Estimate for the quarterly EPS of 66 cents suggests an increase of 4.8% from the year-ago quarter.
Kraft Heinz’s top line is likely to grow year over year in the quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.7 billion, indicating a rise of 3.1% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 11.3%, on average, in the trailing four quarters.
Coty COTY currently has an Earnings ESP of +20.00% and a Zacks Rank #3. COTY is likely to register a top-line improvement when it reports its fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, calling for growth of 13.4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the quarterly EPS of 2 cents suggests an increase of 300% year-over-year. COTY has a trailing four-quarter earnings surprise of 145%, on average.
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The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
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Kraft Heinz Company (KHC) : Free Stock Analysis Report
Kenvue Inc. (KVUE) : Free Stock Analysis Report
