Analysts Expect No Growth in Hain Celestial’s Fiscal 2Q16 EPS



Earnings trend

The Hain Celestial Group (HAIN) has been on an overall positive earnings growth trend since fiscal 1Q11. However, earnings fell in fiscal 3Q15 and fiscal 1Q16 due to the unfavorable impact of foreign currencies. The company reported 1Q16 EPS (earnings per share) of $0.37, up by 8.8% from fiscal 1Q15. This figure was in line with estimates. Hain Celestial’s EPS have met or beat analysts’ estimates during the past few quarters.

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Earnings estimates

Analysts expect Hain Celestial’s EPS to be $0.54 in fiscal 2Q16. This amounts to no growth for the quarter. The company also provided guidance for its fiscal 2Q16 EPS. It projects EPS of $0.53–$0.56, reflecting the continuing strong performance of its Hain Pure Protein Corporation and its international businesses in constant currency terms.

This performance is expected to be offset by certain effects from the United States segment, including lower consumption and reductions in shipments and inventories for certain customers.

The company updated its guidance for fiscal 2016 on January 11. The earnings range is now $1.95–$2.10 per diluted share, a rise of 4%-12% as compared to fiscal 2015. The guidance includes an estimated unfavorable currency impact of ~$0.05 per diluted share but excludes the impact of any future acquisitions.

Analysts who follow the company are expecting its earnings to grow at an average annual rate of 11.1% over the next five years. This year, analysts are forecasting an earnings rise of 7.1% over last year. Analysts expect earnings to grow by 11.7% over this year’s forecast earnings.

Peers’ earnings

Hain Celestial’s main competitors are Campbell Soup (CPB), General Mills (GIS), and Mondelez International (MDLZ). They saw EPS of $0.95, $0.82, and $0.42, respectively, for their last reported quarters. To gain exposure to these stocks, you can invest in ETFs such as the Consumer Staples Select Sector SPDR Fund (XLP) and the PowerShares Dynamic Food & Beverage Portfolio (PBJ). In total, they invest 6.4% and 13.1% of their respective portfolios in these three stocks.


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