The Hain Celestial Group, Inc. (NASDAQ:HAIN) Released Earnings Last Week And Analysts Lifted Their Price Target To US$10.10

Shareholders will be ecstatic, with their stake up 30% over the past week following The Hain Celestial Group, Inc.'s (NASDAQ:HAIN) latest yearly results. The statutory results were mixed overall, with revenues of US$1.7b in line with analyst forecasts, but losses of US$0.84 per share, some 8.6% larger than the analysts were predicting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Hain Celestial Group

Following last week's earnings report, Hain Celestial Group's twelve analysts are forecasting 2025 revenues to be US$1.72b, approximately in line with the last 12 months. Hain Celestial Group is also expected to turn profitable, with statutory earnings of US$0.40 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.76b and earnings per share (EPS) of US$0.39 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The average price target rose 6.8% to US$10.10, with the analysts signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hain Celestial Group analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$8.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 4.0% per annum 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 3.0% per year. 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hain Celestial Group following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts 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.