Hain Celestial Profit Rises, Lifts FY Outlook; Shares Down - Update

(RTTNews) - Hain Celestial Group Inc. (HAIN) Tuesday reported an increase in profit for the second quarter, as the natural and organic foods company reported an 18 percent revenue growth. Earnings for the quarter were in line with estimates, but revenues fell short of expectations.

Going forward, the company lifted its full-year financial outlook. Nonetheless, Hain Celestial shares plunged over seven percent in extended trading hours.

Melville, New York-based Hain Celestial's second-quarter profit rose to $41.2 million or $0.84 per share from $31.6 million or $0.67 per share last year.

Adjusted earnings for the quarter improved to $0.87 per share from $0.74 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.87 per share for the quarter. Analysts' estimates typically exclude special items.

Hain's sales for the December quarter surged 18 percent to $534.9 million from $455.3 million a year ago. Fourteen analysts, on consensus, expected sales of $537.75 million for the year.

Hain Celestial US sales, which represents more than half of the revenues, grew 16.9 percent to $327.7 million, while sales from the UK surged 21.5 percent to $146.1 million. The Rest of World segment sales grew 11.6 percent to $51.1 million.

Commenting on the results, Chief Executive Irwin Simon said, "We delivered strong sales driven by expanded distribution and brand contribution as well as robust operating margin expansion as we leveraged our selling, general and administrative expenses with a higher sales base."

Looking ahead, the company now expects its full-year 2014 earnings in the range of $3.07 to $3.15 per share and sales of $2.12 billion to $2.15 billion. Analysts currently expect full-year earnings of $3.11 per share on revenues of $2.14 billion.

Earlier, the company expected earnings to be in the range of $2.95 to $3.05 per share and sales of $2.03 billion to $2.05 billion.

"With a good start to our third quarter, we expect to deliver a strong second half in sales and profitability as consumption trends reflect consumers seeking out our organic and natural products," Simon added.

HAIN closed Tuesday's trading at $90.99, up $1.52 or 1.70%, on the Nasdaq. The stock, however, dropped $6.51 or 7.15% in after-hours trade.