Hain Celestial (HAIN) Queued Up for Q1 Earnings: Things to Note

The Hain Celestial Group, Inc. HAIN is likely to register a top- and bottom-line decrease from the respective year-ago fiscal quarter’s reported figures when it reports first-quarter fiscal 2023 earnings on Nov 8, before market open. The Zacks Consensus Estimate for quarterly revenues stands at $446.8 million, indicating a 1.8% dip from the year-ago fiscal quarter’s actuals.

The consensus mark for earnings in the fiscal first quarter has moved down a penny in the past 30 days to 10 cents, suggesting a decrease of almost 60% from the year-ago fiscal quarter’s reported figure.

We expect revenues of $460.9 million to rise 0.4% organically and the bottom line to decline 28.1% to 18 cents per share for the fiscal first quarter.

In the last reported quarter, Hain Celestial witnessed a negative earnings surprise of 70.4%. This organic and natural-products company came up with a negative surprise of 21.3%, on average, in the trailing four quarters.

Key Factors to Note

Hain Celestial has been grappling with several challenges for a while, including inflationary pressures, supply-chain disruptions and weaker plant-based categories. HAIN’s supply-chain disruptions persist across the majority of its brands that induced higher costs.

Supply-chain issues and steep inflation costs continue hurting HAIN’s North America segment. In addition, macroeconomic headwinds and weaker plant-based categories have been adversely impacting its international unit for sometime now. This apart, Hain Celestial continues making huge investments in marketing to support innovation, launches and core products. All the aforesaid headwinds might have hurt HAIN’s performance during the quarter under review.

On its last earnings call, management projected margins and EBITDA for the first quarter of fiscal 2023 to be modestly below the fourth-quarter level of fiscal 2022. Management further highlighted that it expects the fiscal first quarter to be the toughest period, given the challenging overlaps in the first half.

On the flip side, Hain Celestial’s 3.0 journey, which aims at reshaping its portfolio, including strategic acquisitions in high-growth categories like snacks, appears encouraging. Management is aggressively taking actions to reduce cost structure, bring new customers and improve plant-based trends.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Hain Celestial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you see below. 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 #5 (Strong Sell) and an Earnings ESP of -3.45%, making surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season:

BJ's Wholesale BJ has an Earnings ESP of +0.63% and a Zacks Rank of 1, currently. BJ is likely to register top-line growth from the prior-year fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.62 billion, suggesting 8.3% growth from the figure reported in the prior-year fiscal quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BJ's Wholesale’s earnings in the fiscal third quarter is pegged at 80 cents, suggesting a 12.1% decline from 91 cents reported in the year-ago fiscal quarter. The consensus mark has been stable in the past 30 days. BJ delivered an earnings beat of 16.5%, on average, in the trailing four quarters.

lululemon athletica LULU currently has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. LULU is likely to register an increase in the bottom line from the year-ago fiscal quarter’s reported figure when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings has been stable at $1.95 per share over the past 30 days, suggesting 20.4% growth from the year-ago fiscal quarter’s reported number.

lululemon athletica’s top line is expected to rise from the prior-year fiscal quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.80 billion, suggesting a 24.4% rise from the figure reported in the prior-year fiscal quarter. LULU delivered an earnings beat of 10.4%, on average, in the trailing four quarters.

The J. M. Smucker SJM currently has an Earnings ESP of +1.06% and a Zacks Rank of 3. SJM is expected to register a top-line increase from the year-earlier fiscal quarter’s reported number when it posts second-quarter fiscal 2023 numbers.

The Zacks Consensus Estimate for The J. M. Smucker’s quarterly revenues is pegged at $2.16 billion, suggesting an increase of 5.2% from the prior-year fiscal quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has risen a penny in the past 30 days to $2.17 per share, suggesting a fall of 10.7% from the year-ago fiscal quarter’s tally. SJM delivered an earnings beat of 20.8%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report
 
BJ's Wholesale Club Holdings, Inc. (BJ) : Free Stock Analysis Report
 
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