Hain Celestial Group Inc. (HAIN) shares closed 9.2% lower at $16.15 in Thursday's trading after a not-very-healthy earnings report from the herbal tea and organic food maker.
The Lake Success, N.Y.-based food conglomerate, whose holdings include the Celestial Seasonings brand of herbal teas, reported adjusted earnings per share of 14 cents in its fiscal second quarter, well below the 26-cent estimate of economists surveyed by Zacks. Earnings per share also come in at less than half of the 32 cents that Hain Celestial posted during the same period a year ago.
On an unadjusted basis that includes the expense of non-recurring items and other factors, Hain Celestial lost money in the second quarter, with a loss of 28 cents a share.
Revenue also fell short of Wall Street expectations. Hain Celestial reported second-quarter revenue of $584.2 million, below the $612 million estimate of analysts surveyed by Zacks.
Mark Schiller, Hain Celestial's president and chief executive officer, said the herbal tea maker is "creating a new strategic direction" and "working diligently to restore profitable growth in the United States."
Hain Celestial has a "core set of high margin brands" that have "mainstream potential, with the herbal tea maker planning to pump more resources into those plans, Schiller said in a press release. The company had previously announced plans to divest its Hain Pure Protein unit.
"Although we are not satisfied with our near-term performance, we are starting to see sequential improvement in our numbers," Schiller said.