The Hain Celestial Group (NASDAQ:HAIN) Announces Quarterly Earnings Results, Misses Expectations By $0.04 EPS

The Hain Celestial Group (NASDAQ:HAIN) released its earnings results on Monday. The company reported ($0.07) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.04), FiscalAI reports. The company had revenue of $260.27 million during the quarter, compared to analysts’ expectations of $283.03 million. The Hain Celestial Group had a negative return on equity of 5.45% and a negative net margin of 22.53%. During the same period in the prior year, the company 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 Price Performance

NASDAQ:HAIN opened at $0.14 on Tuesday. The company has a 50 day moving average price of $0.44 and a 200-day moving average price of $0.66. The Hain Celestial Group has a 1-year low of $0.12 and a 1-year high of $1.48. The firm has a market cap of $13.10 million, a price-to-earnings ratio of -0.04 and a beta of 1.04.

Hedge Funds Weigh In On The Hain Celestial Group

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Nantahala Capital Management LLC acquired a new position in The Hain Celestial Group during the second quarter worth about $4,777,828. BlackRock Inc. purchased a new stake in shares of The Hain Celestial Group in the 2nd quarter valued at $1,624,000. Man Group plc acquired a new stake in shares of The Hain Celestial Group during the second quarter worth about $750,000. Solas Capital Management LLC purchased a new position in The Hain Celestial Group in the 2nd quarter valued at approximately $480,000. Finally, Ieq Capital LLC acquired a new position in The Hain Celestial Group during the 2nd quarter worth $179,000. Hedge funds and other institutional investors own 97.01% of the company’s stock.

Key Headlines Impacting The Hain Celestial Group

Here are the key news stories impacting The Hain Celestial Group this week:

• Positive Sentiment: Hain outlined approximately $16 million in SG&A run-rate savings, with full realization expected by the first half of fiscal 2028. Its first-quarter loss also narrowed compared with a year earlier, offering some evidence of improvement. Article: Hain Celestial outlines savings Article: Q1 loss narrows
• Negative Sentiment: Fiscal Q1 results missed expectations: Hain reported a $0.07-per-share loss versus estimates for a loss of about $0.03–$0.04, while revenue of $260.27 million fell short of the roughly $283 million consensus. The shortfalls reinforce concerns that sales and earnings remain under pressure. Article: Q1 loss and revenue miss Article: Sales and earnings under pressure
• Negative Sentiment: The proposed sale of Hain’s international business to Aurelius has been reported as in doubt. Uncertainty around the transaction could complicate the company’s plans to reshape its business and adds risk alongside the operating shortfall. Article: International deal with Aurelius in doubt

Analyst Ratings Changes

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

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.