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Hain Celestial (HAIN) to Report Q4 Earnings: What's in Store?

Zacks Equity Research
·4 min read

The Hain Celestial Group, Inc. HAIN is scheduled to release fourth-quarter fiscal 2020 results on Aug 25, before market open. Notably, this organic- and natural-products company delivered a trailing four-quarter earnings surprise of 9.9%, on average.

Although the Zacks Consensus Estimate for fourth-quarter earnings has been stable at 24 cents in the past 30 days, the estimate suggests growth of over 28% from the year-ago quarter’s tally. Moreover, the consensus estimate for quarterly revenues stands at $511.2 million, which indicates a decline of 8.3% from the year-ago quarter.

For fiscal 2020 earnings, the Zacks Consensus Estimate has been stable at 79 cents in the past 30 days and suggests growth of 19.7% from the figure reported in the year-earlier period. Moreover, the consensus estimate for quarterly revenues stands at $2.1 billion, which indicates a fall of 8.7% from last fiscal.

The Hain Celestial Group, Inc. Price and EPS Surprise

 

The Hain Celestial Group, Inc. Price and EPS Surprise
The Hain Celestial Group, Inc. Price and EPS Surprise

The Hain Celestial Group, Inc. price-eps-surprise | The Hain Celestial Group, Inc. Quote

Key Factors to Note

Hain Celestial is benefiting from its transformation strategy and Project Terra efforts. Notably, the transformation strategy is focused on simplifying portfolio, identifying areas of productivity, enhancing margins, reviving top-line growth and improving cash flows. The company’s strategic divestitures have been reinvigorating sales growth via discontinuing uneconomic investments, realigning resources, and minimizing unproductive stock-keeping units and brands.

Apart from these positives, we expect the fourth-quarter performance to have most likely benefited from massive demand. Also, increased food-at-home consumption owing to the pandemic, along with assumption of minimal supply-chain disruptions might show on quarterly results. On its third-quarter earnings call on May 7, management said that it continues to project year-over-year growth in gross-margin dollars and percentage, and adjusted EBITDA margin in dollars for fiscal fourth quarter.

For fiscal 2020, management had expected adjusted EBITDA growth of 15-21% to $190-$200 million. At constant currency, adjusted EBITDA had been projected to improve 18-24% to $195-$205 million. Further, Hain Celestial had envisioned adjusted earnings per share of 75-82 cents, which suggests growth of 25-37% from fiscal 2019. At constant currency, adjusted earnings per share had been estimated to improve 30-42% to 78-85 cents.

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.

Hain Celestial has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks With a Favorable Combination

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:

Big Lots BIG currently has an Earnings ESP of +5.04% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ollie’s Bargain Outlet OLLI presently has an Earnings ESP of +8.90% and a Zacks Rank #2.

Best Buy BBY currently has an Earnings ESP of +0.95% and a Zacks Rank #2.

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Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
 
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Ollies Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report
 
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