What to Note Ahead of Hain Celestial's (HAIN) Q1 Earnings
The Hain Celestial Group, Inc. HAIN is likely to register a top- and bottom-line decline when it reports first-quarter fiscal 2024 earnings on Nov 7. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.9 million, indicating a drop of 1.5% from the year-ago quarter’s figure.
The consensus mark for the fiscal first quarter’s bottom line has been stable at a loss of 6 cents in the past 30 days, suggesting a decrease of 160% from the year-ago quarter’s actual.
The organic and natural products company has a trailing four-quarter negative earnings surprise of 1.8%, on average. In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate.
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 witnessing softness in its North America segment owing to lower sales of personal care products. Lower distribution and customer promotions across the snacks category and the challenges within the ParmCrisps brand might have hurt the segment’s performance in the first quarter of fiscal 2024. We expect the North America segment to generate net sales of $267.1 million in the fiscal first quarter, indicating a decline of 7.4% year over year.
The company’s first quarter of the fiscal year is seasonally the smallest in terms of net sales and adjusted EBITDA. Along with the headwinds in the North America business, HAIN is expected to have witnessed industry-wide supply constraints with respect to its Earth's Best organic baby formula business. Hain Celestial’s optimization of promotional activity for Terra chips is expected to have led to a revenue headwind in the quarter. Also, the company’s international presence keeps it exposed to unfavorable currency fluctuations.
For the fiscal first quarter, HAIN projects adjusted net sales, on a consolidated basis, to decline in low single-digit percentage year over year. Management anticipates adjusted EBITDA in the band of $20-$21 million in the quarter, which is in line with our estimate.
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 and meal preparation businesses. Our estimate for net sales from the international segment is pegged at $172 million, suggesting growth of 14% year over year.
Although moderated, a lingering inflationary environment and a fixed-cost deleverage might have hurt HAIN’s margins in the to-be-reported quarter. However, the company’s effective pricing and productivity actions hold promise. We expect an adjusted gross margin of 19.1% in the quarter, reflecting a year-over-year decline of 240 basis points.
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. That is not the case here, as elaborated below.
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.
Inter Parfums IPAR currently has an Earnings ESP of +8.09% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a bottom-line decrease when it reports third-quarter 2023 results. The Zacks Consensus Estimate for earnings is pinned at $1.27 per share, indicating a decline of 2.3% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $368 million, indicating growth of 31.2% from that reported in the year-ago quarter. IPAR has a trailing four-quarter average earnings surprise of 45.9%.
The J. M. Smucker Co. SJM currently has an Earnings ESP of +0.27% and carries a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for earnings is pinned at $2.47 per share, indicating growth of 2.9% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have decreased year over year. The consensus mark for the same is pegged at $2 billion, indicating a fall of 11.3% from that reported in the year-ago quarter. SJM has a trailing four-quarter average earnings surprise of 7.3%.
TreeHouse Foods THS currently has an Earnings ESP of +9.47% and a Zacks Rank #2. THS is likely to record top-line growth when it reports third-quarter 2023 results.
The Zacks Consensus Estimate for revenues is pegged at $954.5 million, indicating a 9.1% improvement from the prior-year quarter’s actual. The consensus mark for earnings is pinned at 48 cents per share, implying a 166.7% increase from that reported in the year-ago quarter. It has a trailing four-quarter earnings surprise of 31.4%, on average.
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The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
