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Why Is Hain Celestial (HAIN) Down 10.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Hain Celestial (HAIN - Free Report) . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hain Celestial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Hain Celestial Posts Loss in Q4 Amid Ongoing Portfolio Streamlining Efforts
The Hain Celestial has posted fourth-quarter fiscal 2025 results, with the top and bottom lines declining year over year. Also, both metrics missed the consensus mark.
More on Hain Celestial’s Q4 Results
The company posted an adjusted loss of two cents per share, missing the Zacks Consensus Estimate for adjusted earnings of 4 cents. The bottom line also declined from adjusted earnings of 13 cents in the year-ago quarter.
Net sales of $363.3 million missed the consensus estimate of $375 million. The top line declined 13.2% year over year. Organic sales fell 10.8% from the year-ago quarter. The decline in organic net sales was entirely led by an 11-point drop in the volume/mix, with pricing remaining unchanged.
The adjusted gross profit was $74.3 million, which fell 24.1% from the year-ago quarter. The adjusted gross margin contracted 290 basis points (bps) from the year-ago quarter to 20.5%.
SG&A expenses were $67.4 million, down 6.7% from $72.3 million in the year-ago quarter. As a percentage of net sales, this metric increased 130 bps year over year to 18.6% in the quarter under review.
Adjusted EBITDA was $19.9 million, down 49.7% from $39.5 million in the year-ago quarter. The adjusted EBITDA margin was 5.5%, down 390 bps year over year.
Hain Celestial’s Q4 Revenue & Profit Insights by Segments
Net sales in the North America segment tumbled 20.8% from the year-ago quarter to $205.8 million. Segmental organic net sales declined 14.4% year over year due to weaker snack sales and, to a lesser extent, softness in meal preparation.
The segment’s adjusted gross profit was $39.5 million, down 32.6% year over year, while the adjusted gross margin fell 340 basis points to 19.2%. The decline was due to a lower volume/mix and increased trade spending, partially offset by productivity improvements.
Adjusted EBITDA was $10.4 million, down from $20.9 million in the prior year, largely attributable to a lower volume/mix and elevated trade spending, partially mitigated by productivity gains and reduced SG&A expenses, primarily stemming from lower employee-related costs. The adjusted EBITDA margin declined to 5.1% from 8% a year earlier.
The International segment’s net sales fell 1.0% from the year-ago quarter to $157.6 million. Segmental organic net sales fell 5.9% year over year due to softness in meal prep and beverages.
Segmental adjusted gross profit was $34.8 million, down 11.7% year over year. The adjusted gross margin contracted 270 basis points to 22.1%, led by cost inflation and a lower volume/mix, partially offset by productivity.
Adjusted EBITDA decreased 22.5% year over year to $20.9 million. The decline was mainly attributable to softer volume/mix, partially offset by productivity gains and favorable net pricing. The adjusted EBITDA margin declined 370 basis points to 13.3%, down from 17% in the prior year.
Hain Celestial’s Categorical Sales Details
In the Snacks category, organic net sales dropped 19.1% from the prior-year quarter. In the Baby & Kids category, organic net sales fell 9.3% year over year. In Beverages, organic net sales declined 3.1%. For Meal Prep, organic net sales decreased 7.6%.
Hain Celestial’s Financial Snapshot: Cash, Debt & Equity Overview
The company closed the quarter with cash and cash equivalents of $54.4 million, long-term debt (excluding the current portion) of $697.2 million, and total shareholders’ equity of $475 million. Net cash used in operating activities was $2.6 million for the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -83.33% due to these changes.
VGM Scores
At this time, Hain Celestial has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Hain Celestial has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Hain Celestial (HAIN) Down 10.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Hain Celestial (HAIN - Free Report) . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hain Celestial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Hain Celestial Posts Loss in Q4 Amid Ongoing Portfolio Streamlining Efforts
The Hain Celestial has posted fourth-quarter fiscal 2025 results, with the top and bottom lines declining year over year. Also, both metrics missed the consensus mark.
More on Hain Celestial’s Q4 Results
The company posted an adjusted loss of two cents per share, missing the Zacks Consensus Estimate for adjusted earnings of 4 cents. The bottom line also declined from adjusted earnings of 13 cents in the year-ago quarter.
Net sales of $363.3 million missed the consensus estimate of $375 million. The top line declined 13.2% year over year. Organic sales fell 10.8% from the year-ago quarter. The decline in organic net sales was entirely led by an 11-point drop in the volume/mix, with pricing remaining unchanged.
The adjusted gross profit was $74.3 million, which fell 24.1% from the year-ago quarter. The adjusted gross margin contracted 290 basis points (bps) from the year-ago quarter to 20.5%.
SG&A expenses were $67.4 million, down 6.7% from $72.3 million in the year-ago quarter. As a percentage of net sales, this metric increased 130 bps year over year to 18.6% in the quarter under review.
Adjusted EBITDA was $19.9 million, down 49.7% from $39.5 million in the year-ago quarter. The adjusted EBITDA margin was 5.5%, down 390 bps year over year.
Hain Celestial’s Q4 Revenue & Profit Insights by Segments
Net sales in the North America segment tumbled 20.8% from the year-ago quarter to $205.8 million. Segmental organic net sales declined 14.4% year over year due to weaker snack sales and, to a lesser extent, softness in meal preparation.
The segment’s adjusted gross profit was $39.5 million, down 32.6% year over year, while the adjusted gross margin fell 340 basis points to 19.2%. The decline was due to a lower volume/mix and increased trade spending, partially offset by productivity improvements.
Adjusted EBITDA was $10.4 million, down from $20.9 million in the prior year, largely attributable to a lower volume/mix and elevated trade spending, partially mitigated by productivity gains and reduced SG&A expenses, primarily stemming from lower employee-related costs. The adjusted EBITDA margin declined to 5.1% from 8% a year earlier.
The International segment’s net sales fell 1.0% from the year-ago quarter to $157.6 million. Segmental organic net sales fell 5.9% year over year due to softness in meal prep and beverages.
Segmental adjusted gross profit was $34.8 million, down 11.7% year over year. The adjusted gross margin contracted 270 basis points to 22.1%, led by cost inflation and a lower volume/mix, partially offset by productivity.
Adjusted EBITDA decreased 22.5% year over year to $20.9 million. The decline was mainly attributable to softer volume/mix, partially offset by productivity gains and favorable net pricing. The adjusted EBITDA margin declined 370 basis points to 13.3%, down from 17% in the prior year.
Hain Celestial’s Categorical Sales Details
In the Snacks category, organic net sales dropped 19.1% from the prior-year quarter. In the Baby & Kids category, organic net sales fell 9.3% year over year. In Beverages, organic net sales declined 3.1%. For Meal Prep, organic net sales decreased 7.6%.
Hain Celestial’s Financial Snapshot: Cash, Debt & Equity Overview
The company closed the quarter with cash and cash equivalents of $54.4 million, long-term debt (excluding the current portion) of $697.2 million, and total shareholders’ equity of $475 million. Net cash used in operating activities was $2.6 million for the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -83.33% due to these changes.
VGM Scores
At this time, Hain Celestial has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Hain Celestial has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.