The investors in The Hain Celestial Group, Inc.‘s (NASDAQ:HAIN) will be rubbing their hands together with glee today, after the share price leapt 30% to US$7.98 in the week following its yearly results. Hain Celestial Group reported revenues of US$1.7b, in line with expectations, but it unfortunately also reported (statutory) losses of US$0.84 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hain Celestial Group after the latest results.
Check out 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$1.72b, 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. In the lead-up to this report, the analysts had been modelling revenues of US$1.76b and earnings per share (EPS) of US$0.39 in 2025. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.
The average price target increased 6.8% to US$10.10, with the analysts signalling that the improved earnings outlook is more important to the company’s valuation than its revenue. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 1.0% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 4.0% annually 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 while a broad number of companies are forecast to grow, unfortunately Hain Celestial Group is expected to see its revenue affected worse than other companies in the 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. 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..
We don’t want to rain on the parade too much, but we did also find 1 warning sign for Hain Celestial Group that you need to be mindful 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.
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