The Hain Celestial Group (NASDAQ:HAIN) Issues Quarterly Earnings Results

The Hain Celestial Group (NASDAQ:HAIN) announced its earnings results on Monday. The company reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.04), FiscalAI reports. The Hain Celestial Group had a negative return on equity of 7.11% and a negative net margin of 23.73%. The company had revenue of $260.27 million during the quarter, compared to the consensus estimate of $283.03 million. During the same period in the prior year, the firm posted ($0.23) earnings per share.

Here are the key takeaways from The Hain Celestial Group’s conference call:

• Debt and transaction uncertainty remain the most pressing risks. The required credit-agreement amendment for the international sale was not completed by the deadline, discussions with AURELIUS continue, and the company is also negotiating with lenders ahead of a December debt maturity; net leverage was 5.3x.
• Organic net sales fell 6.7%, with volume and mix down about 7%, and adjusted EBITDA declined to approximately $18 million from $20 million. Management cited weaker volume, cost inflation, and a 29% decline in international adjusted EBITDA.
• Adjusted gross margin improved 320 basis points to 22.8%, and adjusted EBITDA margin rose 140 basis points to 6.8%. The company attributed much of the gross-margin gain to the North American snacks divestiture; it also completed actions addressing $25 million of stranded overhead and implemented $8 million of a targeted $16 million in annual SG&A savings.
• Brand performance was mixed: North American yogurt grew, The Greek Gods gained share despite temporary supply constraints, and Ella’s Kitchen returned to high-single-digit growth. However, North American and international organic sales fell 6% and 7%, respectively, with weakness in baby and kids, tea, and international spreads and drizzles.

The Hain Celestial Group Stock Performance

HAIN traded up $0.01 during trading on Wednesday, reaching $0.14. 766,273 shares of the company’s stock were exchanged, compared to its average volume of 1,604,447. The company’s fifty day moving average price is $0.42 and its 200-day moving average price is $0.66. The Hain Celestial Group has a fifty-two week low of $0.12 and a fifty-two week high of $1.48. The firm has a market capitalization of $12.92 million, a PE ratio of -0.04 and a beta of 1.04.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on HAIN shares. Barclays lowered their price target on shares of The Hain Celestial Group from $0.30 to $0.10 and set an “underweight” rating for the company in a report on Tuesday. Weiss Ratings upgraded The Hain Celestial Group from a “sell (e)” rating to a “sell (e+)” rating in a research report on Monday, September 14th. Zacks Research cut The Hain Celestial Group from a “hold” rating to a “strong sell” rating in a research note on Wednesday, October 21st. Finally, Wall Street Zen downgraded The Hain Celestial Group from a “hold” rating to a “sell” rating in a research report on Saturday, September 26th. Four investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average price target of $0.85.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in HAIN. Empowered Funds LLC bought a new stake in The Hain Celestial Group in the second quarter valued at about $42,000. Bank of New York Mellon Corp acquired a new position in shares of The Hain Celestial Group during the 2nd quarter worth about $50,000. Bank of America Corp DE acquired a new position in shares of The Hain Celestial Group during the 2nd quarter worth about $50,000. Hsbc Holdings PLC bought a new stake in shares of The Hain Celestial Group in the 2nd quarter valued at about $52,000. Finally, SummerHaven Investment Management LLC bought a new stake in shares of The Hain Celestial Group in the 3rd quarter valued at about $54,000. 97.01% of the stock is currently owned by institutional investors.

About The Hain Celestial Group

The Hain Celestial Group, Inc. is a natural and organic products company that develops, markets and distributes food, beverage and personal-care products. Its portfolio includes plant-based foods, snacks, pantry staples, beverages, baby and children’s products, and personal-care items sold through grocery stores, mass retailers, specialty retailers, e-commerce channels and other outlets. The company’s brands have included Celestial Seasonings, Earth’s Best, Terra, Garden of Eatin’, Sensible Portions, Imagine, Alba Botanica, Avalon Organics and JASON.