Hain Celestial +7% After Q3 Earnings: Read Why
Portfolio Pulse from Nabaparna Bhattacharya
Hain Celestial Group, Inc. (NASDAQ:HAIN) shares surged 7% after reporting Q3 earnings that exceeded analyst expectations with an EPS of 13 cents versus the consensus of 7 cents. However, quarterly revenues of $438.358 million missed forecasts by falling 3.7% year over year. The company saw a decline in North America net sales by 6.5% but a slight increase in International net sales by 1.0%. Adjusted EBITDA rose 17.5% year-over-year to $43.8 million. The company revised its FY24 outlook, expecting a 3-4% decline in organic net sales and adjusted EBITDA between $150 million and $155 million, slightly down from the prior view.
May 08, 2024 | 2:24 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Hain Celestial's Q3 earnings surpassed analyst expectations with an EPS of 13 cents, despite a revenue miss. The stock rose 7% following the announcement. The company also adjusted its FY24 outlook, expecting a decline in organic net sales and a slight decrease in adjusted EBITDA projections.
The positive reaction in Hain Celestial's stock price is directly tied to the company's earnings surpassing analyst expectations, which typically leads to increased investor confidence and demand for the stock. The revision in FY24 outlook, despite being a downgrade, was likely offset by the strong Q3 performance, particularly the significant increase in adjusted EBITDA. The detailed financial metrics provided, including the improvement in adjusted gross profit margin and EBITDA margin, further support the positive short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100