Markets
KR

Factors to Know Ahead of Hain Celestial's (HAIN) Q3 Earnings

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

The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise | The Hain Celestial Group, Inc. Quote

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.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Hain Celestial Group, Inc. (HAIN): Free Stock Analysis Report

Walmart Inc. (WMT): Free Stock Analysis Report

Target Corporation (TGT): Free Stock Analysis Report

The Kroger Co. (KR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

KR HAIN WMT TGT

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More