Hain Celestial Q4 Results Beat Estimates; Sees FY15 Sales Above Market View

(RTTNews) - Organic and natural foods company Hain Celestial Group Inc. (HAIN) reported Wednesday higher profit in its fourth quarter with strong growth in net sales. Adjusted earnings per share as well as top line beat market estimates. The company also provided forecast for fiscal 2015, with sales expected to be above analysts' view.

In pre-market activity, Hain Celestial shares were gaining $3.34 or 3.84 percent, and trading at $90.27.

Net income for the fourth quarter rose to $35.72 million from $25.93 million in the prior year. Earnings per share of $0.70 climbed 32.1 percent from last year's $0.53.

Adjusted income, which excluded certain items, was $46.0 million, compared to $31.7 million a year ago. Adjusted earnings per share was $0.90, compared to $0.65 in 2013.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the fourth quarter were $583.83 million, an increase of 26 percent from $463.47 million in the prior year quarter. Wall Street expected revenues of $578.27 million for the quarter.

Hain Celestial US' net sales grew 13.2 percent from last year to $323 million.

For fiscal 2014, earnings per share from continuing operations grew 12.3 percent to $2.83 and adjusted earnings per share from continuing operations was $3.17. Worldwide net sales were $2.154 billion, an increase of 24.2 percent.

Irwin Simon, Founder, President and Chief Executive Officer, said, "Our US business continued to generate strong results as momentum for organic and natural products builds across various channels of distribution. Our UK business posted record sales with increased profit contribution and our Rest of World segment delivered high single digit sales growth."

Looking ahead for fiscal 2015, Hain Celestial expects earnings to be in the range of $3.72 to $3.90 per share, an increase of 17 percent to 23 percent as compared to fiscal year 2014. Total net sales are expected to be in range of $2.725 billion to $2.80 billion, an increase of approximately 27 percent to 30 percent from the prior year.

The outlook includes the company's July acquisition of Hain Pure Protein Corp., which is expected to be accretive by $0.03 to $0.05 per share. Hain Pure's 2014 net sales were approximately $230 million.

Wall Street is currently looking for fiscal year 2015 earnings of $3.73 per share on revenues of $2.51 billion.