|Bid||39.32 x 100|
|Ask||45.78 x 300|
|Day's range||40.35 - 40.99|
|52-week range||39.79 - 59.14|
|PE ratio (TTM)||11.77|
|Earnings date||17 May 2018 - 21 May 2018|
|Forward dividend & yield||1.40 (3.30%)|
|1y target est||46.93|
As demand for organic food increases, Hain Celestial’s (HAIN) growth prospects look bright. The company has an extensive cost-containment initiative, Project Terra. However, increasing brand marketing, commodity inflation, rising freight costs, and stiff competition continue to be a concern. The company’s US segment has continued to underperform, adding to its woes. This year, Hain Celestial’s stock price had fallen 24.7% as of April 17, 2018.
Forward PE (price-to-earnings) multiples (stock price divided by analysts’ earnings estimates for the next four quarters) are among most used metrics for making investment decisions. As of April 17, 2018, Hain Celestial (HAIN) was trading at a 12-month forward PE ratio of 17.2x. Since its fiscal 2Q18 release on February 7, 2018, its valuation multiple has fallen 11.1%. The company is trading at a higher valuation multiple than Campbell Soup (CPB), Kellogg (K), and Conagra Brands (CAG), which are trading at 12-month forward PE ratios of 13.2x, 14.1x, and 16.5x, respectively.
In fiscal 2018 (ending June 20, 2018), Hain Celestial now expects adjusted EPS (earnings per share) of $1.64–$1.75, instead of $1.63–$1.80. Despite a tax rate benefit of $0.08–$0.09 per share, the company has tightened its fiscal 2018 adjusted EPS guidance due to ongoing marketing and brand awareness investments and higher commodity costs.
In 1H18, Hain Celestial’s gross margin was 18.6%, up 110 basis points from 1H17, driven by a 4.4% sales increase. The company’s SG&A (selling, general, and administrative) expenses rose 6.4%. The SG&A expenses, along with acquisition-related charges, were offset by gross margin expansion and reduced accounting review and remediation costs, leading to 22.9% growth in operating income to $67.8 million.
Organic and natural food manufacturer and marketer Hain Celestial’s (HAIN) stock price had fallen 24.7% year-to-date as of April 17, 2018. The company has been facing increasing costs and stiff competition.
Hershey (HSY) is expected to announce its 1Q18 results on April 26, 2018. Analysts expect the company’s sales and EPS (earnings per share) to show YoY (year-over-year) improvement. However, persistent challenges could dent the company’s financials.
Most analysts have maintained a neutral outlook on McCormick (MKC) stock given the tough retail environment and the company’s high debt after its RB Foods acquisition. The rise of private label products also remains a concern.
McCormick’s (MKC) top-line growth has improved significantly over the past two quarters, thanks to incremental sales of its acquired brands, which contributed more than half of this growth. During the last reported quarter, McCormick’s acquired brands, Giotti and RB Foods, added ~2.4% to its overall sales growth of 19%.
McCormick (MKC) has seen double-digit sales and earnings growth over the past couple of quarters, and analysts expect the company’s top and bottom lines to mark double-digit growth in fiscal 2018.
Packaged food manufacturer stocks in the US have been trading in the red and could disappoint investors in upcoming quarters. The soft organic sales (excludes the impact of M&A and currency movements) trend amid the consumer shift towards healthy foods and pressure on margins from the inflation in raw material and logistics costs continue to take a toll on food stocks.
Packaged food has been stale for a while, and it may not be more appetizing anytime soon for major sector players such as Kraft Heinz (KHC), Smucker (SJM), and Campbell Soup (CPB), warns Credit Suisse. Moskow downgraded Kraft Heinz to Underperform and lowered his price target to $55 from $77. The stock has already come down "considerably" this year, but it still has further to fall, as Moskow expects consensus revenue and profit estimates will be revised lower.
On April 6, 2018, Hormel Foods (HRL) was trading at a 12-month forward PE (price-to-earnings ratio) of 18.6x. Following its fiscal 1Q18 results, the company’s valuation multiple has hardly changed.
Hormel Foods (HRL) is a dividend aristocrat. A dividend aristocrat is a company that has increased its dividend payout for 25 years or more. Hormel Foods has been paying an increased dividend for the last 52 years and has paid dividends since 1928.
Over the last year, Hormel Foods (HRL) has beaten the consensus estimate for adjusted EPS (earnings per share) in one quarter, fallen in line with the estimate in one quarter, and missed the estimate in the remaining quarters.
Hormel Foods (HRL) has beaten analysts’ estimates for sales in just two of its last five reported quarters, and it’s missed estimates in the remaining quarters.
Hormel Foods (HRL) has established a road map to boost its financial performance in a challenging food and beverage environment. The food and beverage space is being negatively impacted by inflation in commodity prices, a consumer preference shift to organic and healthy foods, and the rise of private label products. Increasing costs and stiffening competition are weighing on the bottom lines of major food retailers, including Hormel Foods, Conagra Brands (CAG), and the Campbell Soup Company (CPB).
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The company also said Mignini would continue to head its global biscuits and snacks businesses under the newly-created position. Under Mignini, the biscuits and snacks unit, which makes Pepperidge Farm cookies and Arnott's biscuits, has recorded steady growth, accounting for nearly a third of the company's total sales. The reorganization follows Campbell's recent acquisition of Cape Cod chips maker Snyder's-Lance Inc for about $5 billion to help expand its snacking business and counter slowing soup sales.
Campbell Soup Co., the packaged-food giant that’s struggling to break out of a three-year sales slump, named industry veteran Luca Mignini as chief operating officer, putting him in line for the top job....
Campbell Soup Co. said late Thursday that it had shaken up its senior executives and restructured the company, including creating an accelerator unit to assist in building a "agile and dynamic operating ...