Results: The Hain Celestial Group, Inc. Delivered A Surprise Loss And Now Analysts Have New Forecasts

The Hain Celestial Group, Inc. (NASDAQ:HAIN) shareholders are probably feeling a little disappointed, since its shares fell 8.2% to US$4.36 in the week after its latest quarterly results. Revenues fell 4.5% short of expectations, at US$411m. Earnings correspondingly dipped, with Hain Celestial Group reporting a statutory loss of US$1.15 per share, whereas the analysts had previously modelled a profit in this period. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Hain Celestial Group

Taking into account the latest results, Hain Celestial Group's twelve analysts currently expect revenues in 2025 to be US$1.64b, approximately in line with the last 12 months. Statutory losses are forecast to balloon 43% to US$1.10 per share. In the lead-up to this report, the analysts had been modelling revenues of US$1.67b and earnings per share (EPS) of US$0.21 in 2025. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

The consensus price target fell 28% to US$6.50per share, with the analysts clearly concerned by ballooning losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hain Celestial Group at US$10.00 per share, while the most bearish prices it at US$4.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 4.3% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 2.3% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Hain Celestial Group to suffer worse than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Hain Celestial Group dropped from profits to a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Hain Celestial Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hain Celestial Group going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Hain Celestial Group that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.