The Hain Celestial Group, Inc. HAIN will likely register a top-line and a bottom-line decrease when it reports second-quarter fiscal 2023 earnings on Feb 7, before the market open. The Zacks Consensus Estimate for quarterly revenues stands at $457 million, indicating a decline of 4.3% from the year-ago quarter’s actuals.
The consensus mark for second-quarter earnings has been stable at 14 cents in the past 30 days, suggesting a decrease of 61.1% from the year-ago quarter’s figure.
We expect revenues of $453.6 million to reflect an organic decline of 0.8% year over year and the bottom line to plunge 61.7% to 14 cents per share for the fiscal second quarter.
In the last reported quarter, Hain Celestial delivered a break-even earnings surprise. This organic and natural products company delivered a negative earnings surprise of 22.4%, on average, in the trailing four quarters.
Key Factors to Note
Hain Celestial has been grappling with several challenges for a while, including inflationary pressures, supply-chain disruptions and weaker plant-based categories. HAIN has been witnessing lower sales of personal care products and certain supply shortages across many brands.
In addition, foreign currency exchange rate fluctuations have been acting as deterrents. We note that high raw-material inflation, elevated energy expenses and a fixed cost deleverage have been hurting the gross margin for a while now.
On its last quarter earnings call, management anticipated soft top-line results in North America during the fiscal second quarter on persistent baby formula shortages with fewer inventory to sell, a weak tea category due to warmer weather and absence of the Omicron pandemic surge from the previous year.
On the flip side, Hain Celestial’s pricing and productivity efforts seem encouraging. On its first-quarter earnings call, management had projected second-quarter consolidated adjusted net sales growth at constant currency to remain similar to the level registered in the fiscal first quarter. Hain Celestial expects the international constant currency-adjusted net sales growth to improve on a sequential basis. Given the pricing initiatives, HAIN had forecast the adjusted gross margin in the range of flat to up modestly for the quarter under review.
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 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
Hain Celestial has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +3.57%, making surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are a few stocks which according to our model have the right combination of elements to beat on earnings this season:
The Kraft Heinz Company KHC currently has an Earnings ESP of +0.52% and a Zacks Rank of 3. KHC is likely to register a bottom-line decline when it reports fourth-quarter 2022 earnings. The Zacks Consensus Estimate for the quarterly EPS of 77 cents suggests a decrease of 2.5% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kraft Heinz’s top line is likely to grow year over year in the fourth quarter. The Zacks Consensus Estimate for quarterly revenues is pegged at $7.2 billion, indicating a rise of 6.8% from the figure reported in the prior-year quarter. KHC delivered an earnings beat of 15.5%, on average, in the trailing four quarters.
Kellogg Company K currently has an Earnings ESP of +4.12% and a Zacks Rank of 3. K is expected to register a top-line and a bottom-line improvement when it reports fourth-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.7 billion, calling for growth of 7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents suggests a 1.2% increase from the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.
Calavo Growers CVGW currently has an Earnings ESP of +8.33% and a Zacks Rank of 3. CVGW is likely to register a top-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for Calavo Growers’ quarterly revenues is pegged at $277 million, calling for growth of 0.9% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 24 cents suggests a significant increase from the loss per share of 2 cents reported in the year-ago fiscal quarter. CVGW has a trailing four-quarter negative earnings surprise of 27.5%, on average.
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