Hain Celestial (HAIN) Misses Q2 EPS by 1c, Miss on Revenues; Offers FY18 EPS/Revenue Mid-Point Above Consensus

Hain Celestial (NASDAQ: HAIN) reported Q2 EPS of $0.41, $0.01 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $775.2 million versus the consensus estimate of $777.93 million.

Second Quarter Results Summary

• Net sales increased 5% to $775.2 million compared to the prior year period, or 2% on a constant currency basis, primarily reflecting mid-single digit net sales increases from our United Kingdom, Canada and Europe and Hain Pure Protein operating segments, partially offset by a low single digit decrease from the United States segment.
• Net sales increased 1%, compared to the prior year period, when adjusted for foreign exchange and acquisitions, divestitures, and certain other items2.
• Gross margin of 18.6%; adjusted gross margin of 20.2%.
• Operating income of $36.3 million; adjusted operating income of $62.1 million.
• Net income of $47.1 million, an increase of 73% over the prior year period; adjusted net income of $42.7 million, an increase of 30% over the prior year period.
• EBITDA increased 2% to $61.0 million compared to $59.6 million in the prior year period; adjusted EBITDA increased 19% to $82.7 million compared to $69.5 million in the prior year period.
• EPS of $0.45 compared to $0.26 in the prior year period; adjusted EPS of $0.41 compared to $0.32 in the prior year period.

Fiscal Year 2018 Guidance

The Company reiterated its net sales outlook and updated its Adjusted EPS and Adjusted EBITDA guidance for fiscal year 2018 to take into account continued investment in marketing and brand awareness, primarily in the United States, as well as recent freight and certain commodity price headwinds:

• Net sales of $2.967 billion to $3.036 billion, an increase of approximately 4% to 6% as compared to fiscal year 2017.
• Adjusted EBITDA of $340 million to $355 million, an increase of approximately 24% to 29% as compared to fiscal year 2017.
• Adjusted earnings per diluted share of $1.64 to $1.75, which includes an $.08 to $.09 benefit due to tax reform, an increase of approximately 34% to 43% as compared to fiscal year 2017.

GUIDANCE:

Hain Celestial sees FY2018 EPS of $1.64-$1.75, versus the consensus of $1.65. Hain Celestial sees FY2018 revenue of $2.967-3.036 million, versus the consensus of $2.99 million.

For earnings history and earnings-related data on Hain Celestial (HAIN) click here.

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