Canaccord Genuity Morning Coffee on Hain Celestial (HAIN): How Much for Your Sweet Spreads and Jellies?
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Price: $0.79 +27.42%
Rating Summary:
6 Buy, 28 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 28 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Hain Celestial (Nasdaq: HAIN): How much for your sweet spreads and jellies?
Food maker Hain Celestial announced it will buy the jam and spreads business of Britain’s Premier Foods for 200 million pounds (US$316 million) to expand its presence in that market. The deal will give Hain Celestial, home to Celestial Seasonings tea, Earth’s Best baby food and Terra Chips, greater scale in Britain, where it hopes to replicate the success it has experienced in the U.S. Separately, Hain reported better-than-expected fourth-quarter earnings and gave an upbeat forecast for the new fiscal year, proving that its portfolio of natural and organic products is outperforming other packaged food peers. Adjusted EPS of $0.47 exceeded Canaccord Genuity Consumer Products Analyst Scott Van Winkle’s $0.43 estimate and consensus of $0.45, driven by slight higher-than-forecast gross margin and better SG&A leverage (+70bps vs. Van Winkle’s forecast). He notes that the tax rate was slightly favourable and reported sales were a little unfavourable, as discontinued operations captured more of the sales than expected and currency was a greater drag. In the end, Van Winkle remains bullish on the name, believing that improving growth of natural/organic foods, coupled with increased distribution and geographic expansion, will drive acceleration in financial results and the share price.
Food maker Hain Celestial announced it will buy the jam and spreads business of Britain’s Premier Foods for 200 million pounds (US$316 million) to expand its presence in that market. The deal will give Hain Celestial, home to Celestial Seasonings tea, Earth’s Best baby food and Terra Chips, greater scale in Britain, where it hopes to replicate the success it has experienced in the U.S. Separately, Hain reported better-than-expected fourth-quarter earnings and gave an upbeat forecast for the new fiscal year, proving that its portfolio of natural and organic products is outperforming other packaged food peers. Adjusted EPS of $0.47 exceeded Canaccord Genuity Consumer Products Analyst Scott Van Winkle’s $0.43 estimate and consensus of $0.45, driven by slight higher-than-forecast gross margin and better SG&A leverage (+70bps vs. Van Winkle’s forecast). He notes that the tax rate was slightly favourable and reported sales were a little unfavourable, as discontinued operations captured more of the sales than expected and currency was a greater drag. In the end, Van Winkle remains bullish on the name, believing that improving growth of natural/organic foods, coupled with increased distribution and geographic expansion, will drive acceleration in financial results and the share price.
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