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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.
Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Hain Celestial. The Motley Fool owns shares of Hain Celestial. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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