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Hain Celestial Group (HAIN - commentary - Cramer's Take) stock is moving higher after the company reported an "as expected" quarter. The revenue miss was explained as being part of the company's SKU rationalization program, of which what I heard today has been successful. The company has been able to pass on its commodity cost increases in part to consumers while having to manage the balance of the cost increases through productivity and SKU reductions.
Hain Celestial reported third-quarter 2008 EPS of 20 cents on a GAAP basis and 36 cents on an adjusted basis. Revenue was $264.6 million. While EPS was in line with analysts' estimates, the top-line number fell short. Management attributed the shortfall to about $5 million of product that was discontinued. Margins rose by 20 basis points, to 30.7%. SG&A declined 150 basis points, to 18.4%, on the back of productivity and cost efficiencies. Volume growth is strong, and Hain is not seeing consumers trade down despite reports to the contrary. April sales were extremely strong. Product growth:
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At the time of publication, Rothbort had no positions in the stocks mentioned, although positions can change at any time. Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com. Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities. Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University. For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.
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