Ahead of the Bell: Hain Celestial Group
NEW YORK (AP) — Hain Celestial Group's stock is falling in premarket trading Wednesday as the organic and natural products company's fiscal second-quarter revenue missed Wall Street's view.
Late Tuesday Hain Celestial reported adjusted earnings of 87 cents per share on revenue of $534.9 million for the three months ended Dec. 31. Analysts surveyed by FactSet predicted earnings of 87 cents per share on revenue of $536.5 million.
Jonathan Feeney of Janney Capital Markets said in a client note that the second-quarter revenue miss was due to capacity constraints and subpar execution in the United Kingdom. While U.K. revenue climbed 21.5 percent, the analyst said that the performance missed his expectations for the fourth straight quarter.
Feeney reaffirmed a "Neutral" rating.
Jefferies' Thilo Wrede said that investors should view any pullback in the stock as a buying opportunity.
"Hain continues to be one the few packaged food names in our coverage that is well positioned longer term, benefits from demographic shifts in the U.S. and delivers strong top and bottom line growth," the analyst wrote.
Wrede maintained a "Buy" rating and trimmed its price target to $97 from $99.
Shares of Hain Celestial Group Inc. dropped $5.43, or 6 percent, to $85.56 in premarket trading about 90 minutes before the market open.