The Hain Celestial Group, Inc. Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

Simply Wall St.
13 Feb

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

NasdaqGS:HAIN Earnings and Revenue Growth February 13th 2025

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 Bottom Line

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10