Why Hain Celestial (HAIN) Shares Are Getting Obliterated Today

Kayode Omotosho /
2024/02/07 12:42 pm EST

What Happened:

Shares of natural food company Hain Celestial (NASDAQ:HAIN) fell 17.5% in the morning session after the company reported second-quarter results that missed analysts' expectations for revenue, EPS, and free cash flow. Revenue growth was flat year on year. Notably, growth in North America declined 5.2% year on year, led by weak baby formula sales, due to "continued industry-wide challenges in organic formula supply." In addition, the near-term growth outlook was revised with expectations for near-term headwinds due to its restructuring program. The company anticipates "a return to overall growth in the back half of the year." As a result, the company expects organic net sales growth of approximately 1% or more ( versus previous guidance of 2% to 4% growth) for the full year. Overall, it was a weaker quarter for the company, highlighting multiple challenges.

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What is the market telling us:

Hain Celestial's shares are not very volatile than the market average and over the last year have had only 16 moves greater than 5%. Moves this big are very rare for Hain Celestial and that is indicating to us that this news had a significant impact on the market's perception of the business.

Hain Celestial is down 16.5% since the beginning of the year, and at $9.46 per share it is trading 55.4% below its 52-week high of $21.20 from February 2023. Investors who bought $1,000 worth of Hain Celestial's shares 5 years ago would now be looking at an investment worth $585.45.

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