The Hain Celestial Group, Inc. (HAIN) is scheduled to release its first-quarter fiscal 2015 results on Nov 6, 2014. In the previous quarter, this organic and natural products company had reported a positive earnings surprise of 1.1%. Let’s see how things are shaping up for this announcement.
Factors Affecting This Quarter
Hain Celestial’s strategic investments, coupled with continued efforts to contain costs, increase productivity and enhance cash flows and margins, enabled it to deliver healthy results. However, increasing competition and aggressive pricing may weigh on the company’s performance as more and more companies are entering as well as expanding their presence in the Organic & Natural food business.
Earnings Whispers?
Our proven model does not conclusively show that Hain Celestial is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Hain Celestial currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 65 cents a share.
Zacks Rank: Hain Celestial carries a Zacks Rank #2 (Buy). Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
L Brands, Inc. (LB) has an Earnings ESP of +3.13% and a Zacks Rank #2.
The Walt Disney Company (DIS) has an Earnings ESP of +1.14% and a Zacks Rank #2.
Dean Foods Company (DF) has an Earnings ESP of +15.39% and a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment