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Things to Know Before Hain Celestial's (HAIN) Q4 Earnings
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The Hain Celestial Group, Inc. (HAIN - Free Report) is likely to register a top-line increase year over year when it reports fourth-quarter fiscal 2022 earnings on Aug 25, before market open. The Zacks Consensus Estimate for quarterly revenues stands at $458.7 million, indicating a 1.8% rise from the year-ago quarter’s actuals.
However, the bottom line is likely to decline from the year-ago fiscal quarter’s reported number. The consensus mark for earnings in the fiscal second quarter has moved 10% south to 27 cents in the past seven days, suggesting a decrease of 30.8% from the year-ago fiscal quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2022 revenues is pegged at $1.89 billion, suggesting a 3.9% dip from the last fiscal year’s tally. The consensus mark for full-fiscal earnings has dipped 2.4% in the past seven days to $1.21 per share, implying a decrease of 16.6% from the fiscal 2021 level.
We expect revenues of $476.6 million to rise 4.3% organically and the bottom line to decline 5.9% to 41 cents per share for the fiscal fourth quarter. For fiscal 2022, revenues are expected to slide 0.7% from the last fiscal year’s reported figure to $1,911.4 million, while the bottom line is predicted to decline 6.7% to $1.35 per share.
In the last reported quarter, Hain Celestial delivered an earnings surprise of 28.3%. This organic- and natural-products company delivered an earnings surprise of 4.4%, on average, in the trailing four quarters.
Key Factors to Note
Hain Celestial is persistently witnessing several challenges, including inflationary pressures, supply-chain disruptions and package shortages. Supply-chain issues have been affecting sourcing, internal manufacturing and distribution capabilities for sometime now. In addition, warehouse cost pressures due to labor shortages, and other freight cost woes are weighing on HAIN’s performance. Any deleverage in SG&A expense is an added deterrent. All these limitations might have stressed HAIN’s performance in the quarter under review.
Recently, Hain Celestial announced the preliminary results for fourth-quarter fiscal 2022. Management highlighted that results were hurt by the volatile backdrop in Europe and its decision to eliminate the unprofitable SKUs to solidify HAIN’s position. In addition, currency woes acted as a deterrent. HAIN witnessed several challenges due to inflation, the Russia-Ukraine war, low consumer confidence and sluggishness in the plant-based categories.
On the flip side, management is focused on HAIN’s transformation strategy, which aims to simplify its portfolio, identify the additional areas of productivity, drive the top line and improve its cash flow. Hain Celestial is poised well with its nine key brands having robust share gains in various categories.
Q4 Preliminary Results
We note that net sales came in at approximately $457 million and adjusted net sales were $447 million for the fiscal fourth quarter. On excluding nearly 440-basis points of currency headwind, adjusted net sales were almost flat year over year and lower than the earlier view of low-to-mid-single-digit growth. In North America, the United States recorded growth of 8% in adjusted net sales. Robust distribution, pricing, innovation and share gain aided the top line.
Excluding roughly 930-basis points of adverse currency fluctuations, International adjusted net sales lagged expectations and fell 10% in the fourth quarter of fiscal 2022 from the previous fiscal year’s tally.
For the quarter under review, adjusted EBITDA came in at $35 million, nearly $33 million below the year-earlier fiscal quarter’s level. Much of this decrease was seen in the International business unit due to lower net sales, increased inflation and manufacturing deleverage. Also, HAIN has been witnessing inflation and supply disturbances in North America for a while. The metric included charges of about $10 million to eliminate many unprofitable brands and SKUs, and write off obsolete inventory from the sanitizer business to reshape its portfolio. Net income came in at roughly $3 million during the same fiscal period.
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 as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Hain Celestial Group, Inc. Price and EPS Surprise
Hain Celestial has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -30.73%, making surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.07% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement from the year-ago fiscal quarter’s actuals when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.90 suggests an improvement of 7.5% from the year-ago fiscal quarter’s actuals. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty's top line is expected to rise from the year-earlier fiscal quarter’s finals. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, implying an improvement of 11.7% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. DG is likely to register an increase from the year-ago fiscal quarter’s reading in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago fiscal quarter’s reported number.
Dollar General’s top line is expected to have risen from the year-earlier fiscal quarter’s tally. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, suggesting a rise of 8.6% from the figure reported in the prior-year fiscal quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. CHWY is likely to register a bottom-line decrease from the year-ago fiscal quarter’s actuals when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly loss per share is pegged at 12 cents. The year-earlier quarter witnessed a loss of 4 cents per share.
Chewy's top line is expected to rise from the year-ago fiscal quarter’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.
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Things to Know Before Hain Celestial's (HAIN) Q4 Earnings
The Hain Celestial Group, Inc. (HAIN - Free Report) is likely to register a top-line increase year over year when it reports fourth-quarter fiscal 2022 earnings on Aug 25, before market open. The Zacks Consensus Estimate for quarterly revenues stands at $458.7 million, indicating a 1.8% rise from the year-ago quarter’s actuals.
However, the bottom line is likely to decline from the year-ago fiscal quarter’s reported number. The consensus mark for earnings in the fiscal second quarter has moved 10% south to 27 cents in the past seven days, suggesting a decrease of 30.8% from the year-ago fiscal quarter’s reported figure.
The Zacks Consensus Estimate for fiscal 2022 revenues is pegged at $1.89 billion, suggesting a 3.9% dip from the last fiscal year’s tally. The consensus mark for full-fiscal earnings has dipped 2.4% in the past seven days to $1.21 per share, implying a decrease of 16.6% from the fiscal 2021 level.
We expect revenues of $476.6 million to rise 4.3% organically and the bottom line to decline 5.9% to 41 cents per share for the fiscal fourth quarter. For fiscal 2022, revenues are expected to slide 0.7% from the last fiscal year’s reported figure to $1,911.4 million, while the bottom line is predicted to decline 6.7% to $1.35 per share.
In the last reported quarter, Hain Celestial delivered an earnings surprise of 28.3%. This organic- and natural-products company delivered an earnings surprise of 4.4%, on average, in the trailing four quarters.
Key Factors to Note
Hain Celestial is persistently witnessing several challenges, including inflationary pressures, supply-chain disruptions and package shortages. Supply-chain issues have been affecting sourcing, internal manufacturing and distribution capabilities for sometime now. In addition, warehouse cost pressures due to labor shortages, and other freight cost woes are weighing on HAIN’s performance. Any deleverage in SG&A expense is an added deterrent. All these limitations might have stressed HAIN’s performance in the quarter under review.
Recently, Hain Celestial announced the preliminary results for fourth-quarter fiscal 2022. Management highlighted that results were hurt by the volatile backdrop in Europe and its decision to eliminate the unprofitable SKUs to solidify HAIN’s position. In addition, currency woes acted as a deterrent. HAIN witnessed several challenges due to inflation, the Russia-Ukraine war, low consumer confidence and sluggishness in the plant-based categories.
On the flip side, management is focused on HAIN’s transformation strategy, which aims to simplify its portfolio, identify the additional areas of productivity, drive the top line and improve its cash flow. Hain Celestial is poised well with its nine key brands having robust share gains in various categories.
Q4 Preliminary Results
We note that net sales came in at approximately $457 million and adjusted net sales were $447 million for the fiscal fourth quarter. On excluding nearly 440-basis points of currency headwind, adjusted net sales were almost flat year over year and lower than the earlier view of low-to-mid-single-digit growth. In North America, the United States recorded growth of 8% in adjusted net sales. Robust distribution, pricing, innovation and share gain aided the top line.
Excluding roughly 930-basis points of adverse currency fluctuations, International adjusted net sales lagged expectations and fell 10% in the fourth quarter of fiscal 2022 from the previous fiscal year’s tally.
For the quarter under review, adjusted EBITDA came in at $35 million, nearly $33 million below the year-earlier fiscal quarter’s level. Much of this decrease was seen in the International business unit due to lower net sales, increased inflation and manufacturing deleverage. Also, HAIN has been witnessing inflation and supply disturbances in North America for a while. The metric included charges of about $10 million to eliminate many unprofitable brands and SKUs, and write off obsolete inventory from the sanitizer business to reshape its portfolio. Net income came in at roughly $3 million during the same fiscal period.
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 as you see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Hain Celestial Group, Inc. Price and EPS Surprise
The Hain Celestial Group, Inc. price-eps-surprise | The Hain Celestial Group, Inc. Quote
Hain Celestial has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -30.73%, making surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +4.07% and a Zacks Rank #2. ULTA is likely to register a bottom-line improvement from the year-ago fiscal quarter’s actuals when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.90 suggests an improvement of 7.5% from the year-ago fiscal quarter’s actuals. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ulta Beauty's top line is expected to rise from the year-earlier fiscal quarter’s finals. The Zacks Consensus Estimate for quarterly revenues stands at $2.20 billion, implying an improvement of 11.7% from the figure reported in the prior-year fiscal quarter. ULTA has a trailing four-quarter earnings surprise of 49.8%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank of 2. DG is likely to register an increase from the year-ago fiscal quarter’s reading in the bottom line when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has increased a penny over the past 30 days to $2.93 per share. The consensus mark for DG’s earnings per share suggests 8.9% growth from the year-ago fiscal quarter’s reported number.
Dollar General’s top line is expected to have risen from the year-earlier fiscal quarter’s tally. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.39 billion, suggesting a rise of 8.6% from the figure reported in the prior-year fiscal quarter. DG delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Chewy (CHWY - Free Report) currently has an Earnings ESP of +1.03% and a Zacks Rank of 3. CHWY is likely to register a bottom-line decrease from the year-ago fiscal quarter’s actuals when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly loss per share is pegged at 12 cents. The year-earlier quarter witnessed a loss of 4 cents per share.
Chewy's top line is expected to rise from the year-ago fiscal quarter’s reading. The Zacks Consensus Estimate for quarterly revenues stands at $2.50 billion, which indicates an improvement of 16% from the figure reported in the prior-year fiscal quarter. CHWY has a trailing four-quarter earnings surprise of 4.1%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.