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Factors Likely to Decide Hain Celestial's (HAIN) Q1 Earnings

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The Hain Celestial Group, Inc. (HAIN - Free Report) is scheduled to release first-quarter fiscal 2021 results on Nov 10, before market open. Notably, this organic and natural products company delivered an earnings surprise of 15.7% in the last four quarters, on average.

Although the Zacks Consensus Estimate for first-quarter earnings has been stable at 18 cents in the past 30 days, it suggests a sharp increase from 8 cents reported in the year-ago quarter. Moreover, the consensus estimate for quarterly revenues stands at $493.6 million, which indicates an increase of 2.4% from the year-ago quarter.

Key Factors to Note

Hain Celestial’s first-quarter performance is likely to have benefited from its transformation strategy. Notably, the transformation strategy is focused on simplifying portfolio, identifying areas of productivity, enhancing margins and improving cash flows. Moreover, innovations, marketing and assortment optimization efforts have been driving the company’s top line.

The company is also on track with boosting automation capabilities in plants and eliminating the low-margin stock keeping units. These endeavors have been aiding the company in lowering costs. Moreover, the company’s North America segment is performing well, driven by growth in the Get Bigger brands. The Get Bigger brands highlight the company’s strongest brands with higher margins and possess robust growth potential.

On its last earnings call, management guided that first half of fiscal 2021 is likely to be strong on both the top- and bottom-line fronts owing to the prevailing at-home eating trends.

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 to buy or sell before they’re reported with our Earnings ESP Filter.

Hain Celestial has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks With a Favorable Combination

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Grocery Outlet (GO - Free Report) has an Earnings ESP of +10.76% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

General Mills (GIS - Free Report) currently has an Earnings ESP of +3.59% and a Zacks Rank #3.

Energizer (ENR - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3, presently.

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