Story updated at 9:50 a.m. to reflect market activity.
Hain Celestial fell -1.1% to $90.81 in morning trading.
Citigroup analysts also raised EPS estimates for Hain Celestial, citing accelerating consumption trends.
Separately, TheStreet Ratings team rates HAIN CELESTIAL GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HAIN CELESTIAL GROUP INC (HAIN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 22.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.03, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 630.21% to $48.79 million when compared to the same quarter last year. In addition, HAIN CELESTIAL GROUP INC has also vastly surpassed the industry average cash flow growth rate of -27.01%.
- Compared to its closing price of one year ago, HAIN's share price has jumped by 34.58%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- HAIN CELESTIAL GROUP INC's earnings per share declined by 13.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HAIN CELESTIAL GROUP INC increased its bottom line by earning $2.50 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $2.50).
- You can view the full analysis from the report here: HAIN Ratings Report