CHICAGO, Jan. 31, 2012 /PRNewswire/ -- Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes The Hain Celestial Group Inc. (Nasdaq: HAIN). To see more earnings analysis, visit http://at.zacks.com/?id=3207.
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Earnings Preview: Hain Celestial
The Hain Celestial Group Inc. (Nasdaq: HAIN), a leader in natural food and personal care products with an extensive portfolio of well-known brands, is slated to report its second-quarter 2012 financial results on February 1, 2012. The current Zacks Consensus Estimate for the quarter is 49 cents per share. Revenue as per the Zacks Consensus Estimate is $388 million.
Hain Celestial forecasts revenue between $1,455 million to $1,480 million and earnings in the range of $1.63 to $1.73 per share for fiscal 2012.
Second-Quarter 2012 Zacks Consensus
The analysts considered by Zacks expect Hain Celestial to post second-quarter 2012 earnings of 49 cents per share. The current Zacks Consensus Estimate reflects a growth of 25.6% from the prior-year quarter's earnings. The current Zacks Consensus Estimate for the quarter ranges between 47 cents and 52 cents.
Zacks Agreement & Magnitude
Of the 10 analysts covering the stock, 1 analyst revised the estimate upwards in the last 30 days leaving the Zacks Consensus Estimate stable, while none of the analysts revised their estimates in the downward direction.
Positive Earnings Surprise History
With respect to earnings surprises, Hain Celestial has topped the Zacks Consensus Estimate over the last four quarters in the range of 3.6% to 6.1%. The average remained at 5.2%, indicating that the company has outperformed the Zacks Consensus Estimate by an average of 5.2% in the trailing four quarters.
We believe that the company remains well positioned to capitalize on the growing global demand for organic products. The U.S. alone has shown an approximately 20% jump in its consumption of organic foods.
Acquisitions have been a key part of the company's strategy to build market share. Acquisitions have not only expanded Hain Celestial's geographic reach, but have also brought in opportunities to cross-sell its products in the U.S., Canadian, and European markets. Notably, a healthy balance sheet enables the company to target strategic acquisition opportunities.
Following its growth plan, Hain Celestial announced the acquisition of Daniels Group, the U.K. based marketer and manufacturer of fresh and frozen foods. The acquisition offers Hain Celestial a gateway to a sturdy food and grocery market that is swiftly gaining ground. Currently, the frozen category represents more than 50% of food sales in U.K.
Further, the company's strategic initiatives to enhance its portfolio of global brands by acquiring Danival, the manufacturer of certified organic food products with facilities in France, and GG UniqueFiber, the manufacturer of all natural high fiber crackers in Norway, is paying off.
The company's strong fundamentals and favorable outlook are compelling. We, thus, maintain our bullish stance on the stock even in a volatile market. Currently, we have a long-term Outperform rating on the stock.
Dirk Van Dijk, CFA, is the Chief Equity Strategist for Zacks.com.
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