Why The Hain Celestial Group, Inc.'s Shares Took Off

This article originally appeared as part of ongoing coverage in our premium Motley Fool Stock Advisor service... we hope you enjoy this complimentary peek!

What: Shares of Hain Celestial (NASDAQ: HAIN  ) are trading more than 10% higher today after the organic-food specialist reported fiscal fourth-quarter earnings ahead of Wall Street's expectations. 

So what: Hain's fourth-quarter revenue of $583.8 million -- representing growth of 26% year over year -- beat the consensus estimate of $577.7 million, and its adjusted earnings of $0.90 per share narrowly edged Wall Street's expectations of $0.89 in earnings. Hain also provided guidance for its 2015 fiscal year, and both ranges were well ahead of what analysts had modeled. Hain's fiscal 2015 revenue guidance range of $2.7 billion to $2.8 billion trounced the $2.5 billion consensus, and its EPS range of $3.72 to $3.90 also handily exceeds Wall Street's $3.73 EPS consensus. Hain's United Kingdom segment reported gangbusters growth: Its $200.5 million in quarterly sales and $637.5 million in annual sales represented growth of 66% and 52%, respectively.

Now what: The midpoint of Hain's new EPS guidance range gives it a forward P/E ratio of about 25.2, which is a level the stock has only seen for a very brief stretch of the past five years. Its guidance ranges also imply year-over-year growth rates of 29% for the top line and 20% for the bottom line, which is strong progress for a company already reporting billions in annual sales and comparable to this year's growth rates of 24% on the top line and 25% on the bottom line.

Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3077216, ~/Articles/ArticleHandler.aspx, 10/20/2014 7:34:24 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement