Hain Celestial expects growth to slow in the second half of fiscal 2021, stock sinks 7%

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Hain Celestial Group Inc. shares sank 7.2% in Tuesday trading after the natural and organic company reported a fiscal fourth-quarter international sales decline and forecast slowing growth in the second-half of fiscal 2021. Net income totaled $3.2 million, or 4 cents per share, after a loss of 13.6 million, or 13 cents per share, last year. Adjusted EPS of 32 cents beat the FactSet consensus for 27 cents. Sales of $511.7 million were up from $505.3 million last year and ahead of the $511.0 million FactSet outlook. Sales in North America were up 5% to $298.6 million. However, international sales fell 3% to $213.1 million. Hain Celestial is in the midst of a turnaround that includes the divestiture of some brands, like Rudi’s Bakery and Danival. The company did not provide guidance due to the uncertainty tied to the COVID-19 pandemic, but did make some forward-looking comments on the early Tuesday earnings call. The company expects the first half of 2021 “to be stronger on both the top line and bottom line” as eat-at-home trends persist, according to earnings call comments from Chief Executive Mark Schiller, according to FactSet. But growth is expected to slow in the second half of the year. Hain Celestial stock has gained 23% for the year to date while the S&P 500 index is up 6.2% for the period.
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