Hain Shares Drop After Profit Misses Street View

NEW YORK (AP) — Shares of Hain Celestial Group Inc., maker of Celestial Seasonings tea, dropped Wednesday after it reported quarterly results a day earlier that fell short of analysts' expectations.

Hain shares fell 73 cents, or 4 percent, to $17.27 in midmorning trading.

On Tuesday, Hain said its fiscal fourth-quarter profit fell 81 percent, hurt by one-time costs for severance and other items.

RBC Capital Markets analyst Edward Aaron said, "The shortfall largely resulted from pressure in the protein business, which operated at a negative gross margin in the quarter."

Aaron said it could be some time before investors "get comfortable" with Hain again.

"But we think this is a risk worth taking," he said, adding that a restructuring in 2009 should set the company up for better performance going ahead.

He raised RBC's price target on the shares to $22 from $20. He said the current price was "an attractive entry point.