The Hain Celestial Group, Inc.HAIN is slated to release third-quarter fiscal 2018 results on May 8. In the trailing four quarters, this producer, distributor, marketer and seller of natural and organic foods as well as personal care products has underperformed the Zacks Consensus Estimate by an average of 7.9%. The company delivered a negative earnings surprise of 2.4% in the last reported quarter.
Let's delve deep and take a look at the factors that will be influencing the results.
Factors at Play
Industry experts cited that with gradual increase in the number of companies expanding their presence in the natural & organic food business, competition has intensified and this may impact top-line growth. Analysts also pointed that if softness prevails in the company's United States segment it is likely to hurt the results. We noted that in the last reported quarter net sales at the United States segment had dipped 3% year over year.
Hain Celestial remains committed to its four-point strategic plan, including investment in top brands and capabilities to grow globally; delivering on Terra cost savings and productivity; enhancing leadership to deliver on strategic goals and returning value to shareholders. In the first half of fiscal 2018, the company attained cost savings of $35 million under its Project Terra, out of $100 million targeted for the fiscal year. Management had also hinted about its plan to divest Hain Pure Protein business to increase efficiencies and simplify brand portfolio. The company is also making strategic investments in online channel.
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
How Are Estimates Faring?
After registering a bottom-line increase of 28.1% in the second quarter, Hain Celestial is likely to record year-over-year growth of 42.4% in the third quarter of fiscal 2018 as well. The Zacks Consensus Estimate for the quarter under review stands at 47 cents compared with 33 cents reported in the year-ago quarter. We note that the Zacks Consensus Estimate has decreased by a penny in the last 30 days. Analysts polled by Zacks now project revenues of $751.8 million.
What Does the Zacks Model Unveil?
Our proven model does not conclusively shows that Hain Celestial is likely to beat estimates this quarter. This is because a stock needs to have both - a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP - for this to happen. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Hain Celestial has a Zacks Rank #4 (Sell) but an Earnings ESP of +0.45%. Consequently, making surprise prediction difficult.
Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Walmart WMT has an Earnings ESP of +2.46% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
Target TGT has an Earnings ESP of +0.32% and a Zacks Rank #3.
Kroger KR has an Earnings ESP of +4.93% and a Zacks Rank #3.
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