Hain Celestial Surges as CEO Points to Growth in Existing Brands

NEW YORK ( TheStreet) --  Hain Celestial's ( HAIN) shares were surging, up 10.3% to $95.85 by midday Wednesday, as Wall Street cheered the organic and natural food company's better-than-expected guidance for next year, despite concerns over the acquisitive company's organic growth potential.

"Our growth is not just coming from acquisitions, it's coming from existing brands and we'll continue to do that," Chairman and CEO Irwin Simon said on Hain Celestial's earnings call earlier Wednesday.

Hain Celestial, based in Lake Success, N.Y. said Wednesday it expects annual EPS between $3.72 and $3.90 a share for fiscal 2015. Net sales were forecasted to range between $2.725 billion and $2.8 billion. Consensus estimates as tallied by Thomson Reuters had called for fiscal 2015 EPS of $3.73 on revenue of $2.51 billion.

 

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For its fiscal fourth quarter, Hain Celestial reported adjusted earnings of 90 cents a share from continuing operations. Net income for the three months ending June 30 was $35.7 million, or 70 cents a share, compared to $25.9 million, or 53 cents a share in last year's quarter. Net sales rose 26% over the year earlier quarter to $584 million.

"We think we're pretty well-positioned to continue to drive strong organic growth" in the mid-to-high single digits fueled by the fast-growing snack category, tea and personal care, for instance, said John Carroll, CEO of Hain's Celestial U.S. business on the company's fourth-quarter earnings call.

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