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Hain Celestial (HAIN) Down 7.3% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Hain Celestial (HAIN - Free Report) . Shares have lost about 7.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hain Celestial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Hain Celestial Q4 Earnings Top, Hain Reimagined Strategy Yields
The Hain Celestial Group posted fourth-quarter fiscal 2024 results, with the top line declining year over year but surpassing the Zacks Consensus Estimate. The bottom line rose year over year and beat the consensus mark.
More on Hain Celestial’s Q4 Financial Results
HAIN posted adjusted earnings of 13 cents per share, outpacing the Zacks Consensus Estimate of 8 cents. The bottom line increased from adjusted earnings of 11 cents per share in the year-ago quarter.
Net sales of $419 million beat the consensus estimate of $418.2 million. The top line declined 6% year over year. Organic sales fell 4% from the year-ago quarter’s reported figure.
The adjusted gross profit of almost $98 million fell 3.7% from the year-ago quarter’s figure. In comparison, the adjusted gross margin expanded 70 basis points (bps) from the year-ago quarter’s figure to 23.4%.
SG&A expenses were $72.3 million, up from $66.9 million in the year-ago quarter.
Adjusted EBITDA stood at $40 million, down from $44 million in the year-ago quarter’s reported figure. The adjusted EBITDA margin contracted 30 bps to 9.4%.
HAIN Provides Q4 Revenue & Profit Insights by Segment
Net sales in the North America segment tumbled 8% from the year-ago quarter’s reported figure to $260 million. Segmental organic net sales fell 5% year over year, mainly due to reduced personal care sales, partly owing to portfolio simplification and a decline in infant formula sales within the baby and kids category. This drop was partially offset by growth in the snacks segment.
The segment’s adjusted EBITDA amounted to $21 million, down from $27 million in the year-ago quarter. Adjusted EBITDA margin in the quarter dropped to 8% from 9.6% in the year-ago quarter.
The International segment’s net sales fell 4% from the year-ago quarter’s figure to $159 million. Segmental organic net sales also fell 4% year over year, primarily due to lower sales in plant-based meat alternatives within the meal prep category and a decline in snacks. The downside was partially offset by growth in the beverages segment.
The segment’s adjusted EBITDA was $27 million, flat year over year. Adjusted EBITDA margin in the quarter expanded 40 bps to 17%.
HAIN’s Financial Snapshot: Cash, Debt and Equity Overview
The company ended the reported quarter with cash and cash equivalents of $54.3 million, long-term debt (excluding the current portion) of $736.5 million and total shareholders’ equity of $942.9 million.
The company reported cash provided by operating activities of $39 million and a free cash flow of $31 million during the quarter under review.
What Lies Ahead for Hain Celestial?
For fiscal 2025, management expects organic net sales to be stable or show improvement year over year. Adjusted EBITDA is projected to grow mid-single digits and the gross margin is anticipated to rise at least 125 basis points. Additionally, the company forecasts generating at least $60 million in free cash flow for the year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -202.86% due to these changes.
VGM Scores
At this time, Hain Celestial has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Hain Celestial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Hain Celestial (HAIN) Down 7.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Hain Celestial (HAIN - Free Report) . Shares have lost about 7.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hain Celestial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Hain Celestial Q4 Earnings Top, Hain Reimagined Strategy Yields
The Hain Celestial Group posted fourth-quarter fiscal 2024 results, with the top line declining year over year but surpassing the Zacks Consensus Estimate. The bottom line rose year over year and beat the consensus mark.
More on Hain Celestial’s Q4 Financial Results
HAIN posted adjusted earnings of 13 cents per share, outpacing the Zacks Consensus Estimate of 8 cents. The bottom line increased from adjusted earnings of 11 cents per share in the year-ago quarter.
Net sales of $419 million beat the consensus estimate of $418.2 million. The top line declined 6% year over year. Organic sales fell 4% from the year-ago quarter’s reported figure.
The adjusted gross profit of almost $98 million fell 3.7% from the year-ago quarter’s figure. In comparison, the adjusted gross margin expanded 70 basis points (bps) from the year-ago quarter’s figure to 23.4%.
SG&A expenses were $72.3 million, up from $66.9 million in the year-ago quarter.
Adjusted EBITDA stood at $40 million, down from $44 million in the year-ago quarter’s reported figure. The adjusted EBITDA margin contracted 30 bps to 9.4%.
HAIN Provides Q4 Revenue & Profit Insights by Segment
Net sales in the North America segment tumbled 8% from the year-ago quarter’s reported figure to $260 million. Segmental organic net sales fell 5% year over year, mainly due to reduced personal care sales, partly owing to portfolio simplification and a decline in infant formula sales within the baby and kids category. This drop was partially offset by growth in the snacks segment.
The segment’s adjusted EBITDA amounted to $21 million, down from $27 million in the year-ago quarter. Adjusted EBITDA margin in the quarter dropped to 8% from 9.6% in the year-ago quarter.
The International segment’s net sales fell 4% from the year-ago quarter’s figure to $159 million. Segmental organic net sales also fell 4% year over year, primarily due to lower sales in plant-based meat alternatives within the meal prep category and a decline in snacks. The downside was partially offset by growth in the beverages segment.
The segment’s adjusted EBITDA was $27 million, flat year over year. Adjusted EBITDA margin in the quarter expanded 40 bps to 17%.
HAIN’s Financial Snapshot: Cash, Debt and Equity Overview
The company ended the reported quarter with cash and cash equivalents of $54.3 million, long-term debt (excluding the current portion) of $736.5 million and total shareholders’ equity of $942.9 million.
The company reported cash provided by operating activities of $39 million and a free cash flow of $31 million during the quarter under review.
What Lies Ahead for Hain Celestial?
For fiscal 2025, management expects organic net sales to be stable or show improvement year over year. Adjusted EBITDA is projected to grow mid-single digits and the gross margin is anticipated to rise at least 125 basis points. Additionally, the company forecasts generating at least $60 million in free cash flow for the year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -202.86% due to these changes.
VGM Scores
At this time, Hain Celestial has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Hain Celestial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.