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Hain Celestial (HAIN) Q4 Earnings in Focus: Things to Note

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The Hain Celestial Group, Inc. (HAIN - Free Report) is likely to see a decline in its top line when it reports fourth-quarter fiscal 2021 numbers on Aug 26, before market open. The Zacks Consensus Estimate for quarterly revenues is pegged at $462.3 million, indicating a drop of 9.7% from the prior-year quarter’s reported figure. For fiscal 2021, the consensus mark for revenues is pegged at $1,980 million, indicating a decrease of 3.5% from the year-ago period’s reported figure.

The company is likely to register growth in its bottom line during fiscal fourth quarter. The Zacks Consensus Estimate for the same has remained unchanged in the past 30 days at 40 cents per share, suggesting an improvement of 25% from the year-ago quarter’s reported figure. For fiscal 2021, the consensus mark for earnings is pegged at $1.45 per share, indicating a surge of 72.6% from the fiscal 2020 reported figure. The organic and natural products company has a trailing four-quarter earnings surprise of 26.4%, on average. Hain Celestial delivered an earnings surprise of 15.8% in the last-reported quarter.

Things to Note

Hain Celestial has been benefiting from focus on its transformation strategy. The strategy is aimed at simplifying portfolio, identifying additional areas of productivity, driving top-line growth and improving cash flow. Robust innovations, marketing and assortment optimization efforts have been upsides.

Management, during its last earnings call, highlighted that it anticipates gross margin and adjusted EBITDA margin expansion in fiscal 2021. It expects double-digit adjusted EBITDA and operating free cash flow improvement for fiscal 2021. For the fiscal fourth quarter, it expects solid gross margin and EBITDA margin expansion. The company expects gross margin expansion of at least 100 basis points for the quarter. Adjusted EBITDA is likely to have grown by almost 10% in the to-be-reported quarter.

However, management anticipates a 5-8% year-over-year decline in net sales, when adjusted for foreign exchange, divestitures and discontinued brands. The outlook includes 10% negative impact from divestitures and brand shutdowns, as well as a projected 7% headwind stemming from tough comparisons with the pandemic-led demand spike in the year-ago period. When compared with the fourth quarter of fiscal 2019, quarterly net sales are likely to have increased in mid-single digits, after adjusting for foreign currency, divestitures and discontinued brands.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Some Stocks With Favorable Combinations

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 in the to-be-reported quarter.

The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie & Fitch Co. (ANF - Free Report) currently has an Earnings ESP of +6.14% and a Zacks Rank of 1.

Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +17.59% and a Zacks Rank of 2.