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Hain Celestial: This Is Not The Trade You Were Looking For

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Hain Celestial: This Is Not The Trade You Were Looking For

Hain Celestial Group Inc's (NASDAQ: HAIN) surprise announcement on Monday that it needs to delay the release of its earnings and a warning that it won't be able to achieve its prior guidance sent shares tumbling nearly 30 percent to $39.77.

It seems obvious enough, but Oppenheimer's Rupesh Parikh commented in a report that Hain's announcement "represents a significant surprise to investors" especially at a time of widespread speculation that the company is a prime takeover candidate.

Related Link: Hain Celestial Plummets 30%: Could You Have Seen It Coming?

Parikh added that Hain's announcement forced him to "reflect our latest thinking" and lowered his fiscal 2016 earnings per share estimate to $1.98 from a prior $2.00. His fiscal 2017 earnings per share estimate was also lowered to $1.90 from a previous $2.10.

Parikh noted that his downward revised estimates also includes the negative impact of the British pound's "sharp" devaluation and recent industry data points.

Finally, Hain detailed a strategic review under Project Terra a few months ago and the company plans to establish five strategic platforms. The analyst is awaiting the final report, but some of these efforts are likely to be delayed.

Shares remain Perform rated with a price target lowered to $45 from a previous $52.

Latest Ratings for HAIN

DateFirmActionFromTo
Aug 2019MaintainsEqual-Weight
Aug 2019DowngradesNeutralUnderweight
Jun 2019Initiates Coverage OnIn-Line

View More Analyst Ratings for HAIN
View the Latest Analyst Ratings

Posted-In: Oppenheimer Rupesh ParikhAnalyst Color News Guidance Price Target Analyst Ratings Best of Benzinga

 

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