The Hain Celestial Group Inc. Earnings Cheat Sheet: Company Enjoys Fifth Straight Quarter of Double-Digit Growth

The Hain Celestial Group, Inc. (NASDAQ:HAIN) reported its results for the first quarter. Hain Celestial Group manufactures, markets, distributes and sells natural and organic specialty and snack food products and natural personal care products.

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The Hain Celestial Group Earnings Cheat Sheet for the First Quarter

Results: Net income for The Hain Celestial Group, Inc. rose to $11.7 million (26 cents per share) vs. $9.1 million (21 cents per share) in the same quarter a year earlier. This marks a rise of 28.5% from the year earlier quarter.

Revenue: Rose 13.3% to $292.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HAIN reported adjusted net income of 29 cents per share. By that measure, the company beat the mean estimate of 28 cents per share. Analysts were expecting revenue of $288.6 million.

Quoting Management: “We have seen a strong start to our fiscal year as we continue to experience favorable growth trends across our branded portfolio, despite the challenging economy,” said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. “Consumption trends improved year-over-year driven by consumers seeking out our natural and organic products. The strength of our existing portfolio coupled with our very exciting recent acquisitions of Daniels Group in the United Kingdom and the Europe’s Best brand in Canada give us a solid international platform for growth. With our leading brands in on-trend categories, our product innovation capabilities and the depth of our management team and existing infrastructure, we believe our global operations will achieve our growth and profitability expectations. With our newly established international scale, we look for increased growth and profit contributions outside the United States alongside our achievements in the United States,” concluded Irwin Simon.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 31.1% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.1 percentage point to 27.3% from the year earlier quarter. Over that span, margins have grown on average 0.7 percentage point per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by 2 cents in the third quarter of the last fiscal year, and by 2 cents in the second quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 44 cents a share to 48 cents over the last sixty days. The average estimate for the fiscal year is $1.69 per share, a rise from $1.52 ninety days ago.

Competitors to Watch: General Mills, Inc. (NYSE:GIS), Campbell Soup Company (NYSE:CPB), Kraft Foods Inc. (NYSE:KFT), The J.M. Smucker Company (NYSE:SJM), TreeHouse Foods Inc. (NYSE:THS), H.J. Heinz Company (NYSE:HNZ) and PepsiCo, Inc. (NYSE:PEP).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)