Hain Celestial Q2 revenue slightly beats estimates

Overview

• Health and wellness firm's fiscal Q2 revenue slightly beat analyst expectations

• Adjusted EPS for fiscal Q2 missed analyst expectations

• Company divested North American snack business to improve financial flexibility

Outlook

• Company expects sequential improvement in the back half of the year

• Company divested North American snack business to improve financial flexibility

• Company focuses on portfolio simplification and operational execution

Result Drivers

• DIVESTITURE IMPACT - Co divested North American snack business to improve financial flexibility and margins

• VOLUME/MIX DECLINE - Organic net sales decreased 7% due to a 9-point decrease in volume/mix, partially offset by a 2-point increase in pricing

• NORTH AMERICA CHALLENGES - North America organic net sales fell 10% due to snacks and baby formula, partially offset by growth in beverages

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Hain Celestial Group Inc is $1.50, about 22% above its February 6 closing price of $1.23

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX7fGB89

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