Analyst consensus estimate
Hain Celestial (HAIN) will announce its fiscal 2Q18 results on February 7, 2018. Wall Street analysts estimate the company to report adjusted EPS (earnings per share) of $0.43, up 34.4% YoY (year-over-year). The double-digit growth is expected to be driven by the company’s acquisitions, strength in the organic category, as well as cost savings initiatives.
Past EPS performance
Hain Celestial reported adjusted EPS of $0.23 in fiscal 1Q18, which was in line with the consensus analyst estimate. On a YoY basis, adjusted EPS was up 64.3% due to the improvement in sales and margins driven by the company’s strategic initiatives.
In the past eight quarters, Hain Celestial has beaten the analysts’ estimate in two quarters and matched estimates in two quarters. However, it missed the estimates in the remaining four quarters.
Analyst expectations for peers
Analysts expect Kellogg’s (K) to report 4.4% growth in its adjusted EPS in fiscal 4Q17 to $0.96 driven by improvement in sales on account of favorable product and price mix as well as cost savings.
Campbell Soup’s (CPB) adjusted EPS are expected to be down 9.9% to $0.82 in fiscal 2Q18 marred by tepid sales and higher costs (transportation, logistics, and carrot costs due to lower yield). To combat odds, the company has in place strong cost-cutting measures to help it save $450 million by 2020. The company is reinvesting savings to boost revenue growth.
For General Mills (GIS), adjusted EPS is expected to be up 4.2% to $0.75 in fiscal 3Q18 driven by increases in organic sales and margin improvement. The company is expecting margins to get a boost in the second half of the fiscal year on account of favorable pricing mix, cost control efforts, and reduction in cost inflation.
In the next article, we’ll take a look at Hain Celestial’s margins performance.