Last week, you might have seen that The Hain Celestial Group, Inc. (NASDAQ:HAIN) released its second-quarter result to the market. The early response was not positive, with shares down 8.2% to US$4.36 in the past week. It was a pretty negative result overall, with revenues of US$411m missing analyst predictions by 4.5%. Worse, the business reported a statutory loss of US$1.15 per share, a substantial decline on analyst expectations of a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for Hain Celestial Group
Following last week's earnings report, Hain Celestial Group's twelve analysts are forecasting 2025 revenues to be US$1.64b, approximately in line with the last 12 months. Per-share statutory losses are expected to explode, reaching US$1.10 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.67b and earnings per share (EPS) of US$0.21 in 2025. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.
The consensus price target fell 28% to US$6.50per share, with the analysts clearly concerned by ballooning losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hain Celestial Group analyst has a price target of US$10.00 per share, while the most pessimistic values it at US$4.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 2.6% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 4.3% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 2.3% annually. So while a broad number of companies are forecast to grow, unfortunately Hain Celestial Group is expected to see its revenue affected worse than other companies in the industry.
The most important thing to take away is that the analysts are expecting Hain Celestial Group to become unprofitable next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hain Celestial Group's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Hain Celestial Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hain Celestial Group analysts - going out to 2027, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Hain Celestial Group that you should be aware of.
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