The Hain Celestial Group, Inc. Just Missed Earnings; Here's What Analysts Are Forecasting Now

There's been a notable change in appetite for The Hain Celestial Group, Inc. (NASDAQ:HAIN) shares in the week since its quarterly report, with the stock down 13% to US$9.65. Things were not great overall, with a surprise (statutory) loss of US$0.15 per share on revenues of US$454m, even though the analysts had been expecting a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Hain Celestial Group

Following last week's earnings report, Hain Celestial Group's eleven analysts are forecasting 2024 revenues to be US$1.81b, approximately in line with the last 12 months. Statutory losses are forecast to balloon 99% to US$0.018 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.84b and earnings per share (EPS) of US$0.20 in 2024. 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.

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 9.0% to US$12.33, with the analysts signalling that growing losses would be a definite concern. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hain Celestial Group analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$10.00. 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. For example, we noticed that Hain Celestial Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.0% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 4.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 2.5% per year. So it looks like Hain Celestial Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Hain Celestial Group to become unprofitable next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hain Celestial Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hain Celestial Group analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Hain Celestial Group has 1 warning sign we think 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.