Stock Story -
Natural food company Hain Celestial (NASDAQ:HAIN) missed analysts' expectations in Q2 FY2024, with revenue flat year on year at $454.1 million. It made a non-GAAP profit of $0.12 per share, down from its profit of $0.20 per share in the same quarter last year.
Is now the time to buy Hain Celestial? Find out by reading the original article on StockStory.
Hain Celestial (HAIN) Q2 FY2024 Highlights:
- Revenue: $454.1 million vs analyst estimates of $462 million (1.7% miss)
- EPS (non-GAAP): $0.12 vs analyst expectations of $0.12 (1.4% miss)
- Free Cash Flow of $14.83 million, up 108% from the previous quarter
- Gross Margin (GAAP): 22.5%, down from 22.9% in the same quarter last year
- Organic Revenue was up 0.2% year on year
- Market Capitalization: $1.02 billion
With Wonder Bread as its premier brand, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Packaged FoodAs America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods, prepared meals, or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options.
Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences.The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
Sales GrowthHain Celestial carries some recognizable brands and products but is a mid-sized consumer staples company. Its size could bring disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale. On the other hand, Hain Celestial can still achieve high growth rates because its revenue base is not yet monstrous.
As you can see below, the company's revenue has declined over the last three years, dropping 5.2% annually. This is among the worst in the consumer staples industry, where demand is typically stable.
This quarter, Hain Celestial missed Wall Street's estimates and reported a rather uninspiring 0% year-on-year revenue decline, generating $454.1 million in revenue. Looking ahead, Wall Street expects sales to grow 4.9% over the next 12 months, an acceleration from this quarter.
Key Takeaways from Hain Celestial's Q2 Results Hain Celestial largely missed on key lines this quarter, including revenue and EPS. Overall, the results could have been better. The stock is flat after reporting and currently trades at $11.34 per share.
