Dj Hain Celestial Group Inc, Inst Holders, 3Q 2025 (Hain)

What Happened?

Shares of natural food company Hain Celestial fell 4.3% in the morning session after the stock's negative momentum continued as the company reported third-quarter results that showed a significant earnings miss and a drop in year-over-year sales. 

While revenue of $367.9 million slightly beat analyst estimates, it marked a 6.8% decline from the same quarter in the previous year. The main concern for investors was the adjusted earnings per share, which registered a loss of $0.08, missing expectations of a $0.05 loss. Furthermore, the company's organic revenue fell by 6% year-on-year, which was a larger drop than the 5.4% decline analysts had anticipated. The combination of falling sales and a wider-than-expected loss appeared to drive the negative market reaction.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Hain Celestial? Access our full analysis report here.

What Is The Market Telling Us

Hain Celestial’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock gained 13.1% on the news that the company reported mixed third-quarter financial results, where a revenue beat and a positive outlook seemed to outweigh a wider-than-expected loss. The natural food company posted an adjusted loss of eight cents per share, which missed analyst expectations for a five-cent loss. However, quarterly sales of $367.9 million came in ahead of the $360.5 million Wall Street had anticipated, even though sales declined by 6.8% compared to the previous year. Despite the earnings miss, management provided an encouraging outlook. The company noted it was seeing benefits from cost discipline and pricing actions. Furthermore, Hain Celestial expected stronger revenue and profit in the second half of its fiscal year and anticipated generating positive free cash flow for the full year, which appeared to boost investor confidence.

Hain Celestial is down 77.6% since the beginning of the year, and at $1.35 per share, it is trading 84.4% below its 52-week high of $8.63 from December 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $35.76.

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Hain Celestial’s third quarter results received a positive market response despite ongoing year-over-year sales declines. Management attributed the improvement to sequential gains in organic net sales trends, particularly in North America, where Beverages, Baby and Kids, and Meal Prep segments all returned to growth, partially offsetting continued softness in Snacks. Interim CEO Alison Lewis emphasized that cost control measures, a revamped operating model, and targeted brand renovation initiatives are beginning to yield tangible benefits. Lewis noted, “We are already beginning to see results with an improvement in forecast accuracy, a reduction in inventory in North America and an acceleration in the innovation pipeline across the business.”

Is now the time to buy HAIN? Find out in our full research report (it’s free for active Edge members).

Hain Celestial (HAIN) Q3 CY2025 Highlights:

• Revenue: $367.9 million vs analyst estimates of $360.5 million (6.8% year-on-year decline, 2.1% beat)
• Adjusted EPS: -$0.08 vs analyst expectations of -$0.05 (48.1% miss)
• Adjusted EBITDA: $19.73 million vs analyst estimates of $19.81 million (5.4% margin, in line)
• Operating Margin: 1.8%, in line with the same quarter last year
• Organic Revenue fell 6% year on year vs analyst estimates of 5.4% declines (61.1 basis point miss)
• Market Capitalization: $125.9 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Hain Celestial’s Q3 Earnings Call

• Andrew Lazar (Barclays) questioned whether organic sales declines would continue to moderate in the next quarter. CFO Lee Boyce responded that improvement is expected, particularly in the second half, driven by innovation and recovery in key categories.
• Andrew Lazar (Barclays) asked about elasticity from recent pricing actions in North America. Interim CEO Alison Lewis explained that early results in tea align with the 1% elasticity assumption, but noted more competitive dynamics and ongoing monitoring in the Baby category.
• Kaumil Gajrawala (Jefferies) inquired about consumer value-seeking behavior and pricing premium for health-focused products. Lewis emphasized that Hain Celestial’s better-for-you brands offer value that consumers are willing to pay for, and highlighted the company’s efforts to provide accessible price points across channels.
• Kaumil Gajrawala (Jefferies) also probed the impact of private label competition. Lewis stated that private label growth remains modest and that Hain’s brands retain loyalty due to their nutritional profile and taste.
• No additional analyst questions were raised on the call, and management reiterated its focus on execution and cost discipline.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be closely monitoring (1) the pace and impact of new product launches and relaunches in categories like Snacks and Baby and Kids, (2) the effectiveness of cost reduction and SG&A initiatives in supporting margin recovery, and (3) the execution of portfolio simplification, including SKU rationalization and exits from low-margin businesses. Progress on digital marketing and success in e-commerce channels will also be important markers of turnaround momentum.

Hain Celestial currently trades at $1.38, up from $1.07 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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Natural food company Hain Celestial reported Q3 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 6.8% year on year to $367.9 million. Its non-GAAP loss of $0.08 per share was 48.1% below analysts’ consensus estimates.

Is now the time to buy HAIN? Find out in our full research report (it’s free for active Edge members).

Hain Celestial (HAIN) Q3 CY2025 Highlights:

• Revenue: $367.9 million vs analyst estimates of $360.5 million (6.8% year-on-year decline, 2.1% beat)
• Adjusted EPS: -$0.08 vs analyst expectations of -$0.05 (48.1% miss)
• Adjusted EBITDA: $19.73 million vs analyst estimates of $19.81 million (5.4% margin, in line)
• Operating Margin: -1.9%, down from 2.1% in the same quarter last year
• Organic Revenue fell 6% year on year vs analyst estimates of 5.4% declines (61.1 basis point miss)
• Market Capitalization: $108.4 million

StockStory’s Take

Hain Celestial’s third quarter results received a positive market response despite ongoing year-over-year sales declines. Management attributed the improvement to sequential gains in organic net sales trends, particularly in North America, where Beverages, Baby and Kids, and Meal Prep segments all returned to growth, partially offsetting continued softness in Snacks. Interim CEO Alison Lewis emphasized that cost control measures, a revamped operating model, and targeted brand renovation initiatives are beginning to yield tangible benefits. Lewis noted, “We are already beginning to see results with an improvement in forecast accuracy, a reduction in inventory in North America and an acceleration in the innovation pipeline across the business.”

Looking ahead, Hain Celestial’s strategy centers on accelerating new product launches and executing cost-saving initiatives to improve margins and stabilize sales. Management expects a stronger performance in the second half of the year, anchored by their ‘5 actions to win’ plan, which includes portfolio simplification, revenue growth management, and digital marketing. CFO Lee Boyce stated, “We continue to expect aggressive cost cutting and execution against our ‘5 actions to win’ in the marketplace to drive stronger top and bottom line performance in the second half of the year.” The company also highlighted upcoming innovation in categories like Snacks and Baby and Kids, with a focus on premiumization and pricing to offset inflationary pressures.

Key Insights from Management’s Remarks

Management attributed third quarter performance to sequential improvements in core categories and the early impact of portfolio simplification and cost reduction programs.

• Sequential category improvement: Beverages, Baby and Kids, and Meal Prep returned to growth in North America, partially offsetting ongoing declines in the Snacks segment, which remains under turnaround plans.
• Portfolio simplification underway: The company executed its planned exit from the meat-free category in North America and targeted the elimination of approximately 30% of North American SKUs by 2027, aiming to focus resources on higher-margin, higher-growth categories.
• Cost discipline and SG&A reduction: Restructuring actions and operational changes led to an 8% reduction in selling, general, and administrative expenses year over year, with further cost initiatives expected to deliver over 12% reductions in people-related SG&A expenses.
• Innovation pipeline acceleration: Hain Celestial launched new products across its key brands, including a major relaunch of Garden Veggie Snacks (now made with avocado oil and new recipes), expanded single-serve offerings for Greek Gods yogurt, and new snack lines under Earth's Best targeting older children.
• Digital-first marketing and e-commerce: The shift to digital-first marketing models, such as CRM programs and partnerships with platforms like Ibotta, began to drive improved returns on advertising spend and supported e-commerce growth, especially in tea and yogurt.

Drivers of Future Performance

Management sees future performance hinging on innovation, cost reductions, and the success of pricing and trade initiatives across key brands.

• Product innovation and relaunches: The company is rolling out new and renovated products, particularly in Snacks and Baby and Kids, with the expectation that these launches will drive incremental sales and help regain market share in declining segments.
• Aggressive cost and margin actions: Ongoing restructuring and cost-cutting programs are expected to further reduce SG&A expenses and improve operating margins, with productivity savings targeted above $60 million for the year and additional benefits from overhead realignment.
• Pricing and channel strategy: Management is implementing strategic price increases and optimizing price pack architecture to balance value-seeking consumer trends with inflation recovery. Early results from Tea and Baby categories are promising, but continued competitive pressure and consumer caution remain risks.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will be closely monitoring (1) the pace and impact of new product launches and relaunches in categories like Snacks and Baby and Kids, (2) the effectiveness of cost reduction and SG&A initiatives in supporting margin recovery, and (3) the execution of portfolio simplification, including SKU rationalization and exits from low-margin businesses. Progress on digital marketing and success in e-commerce channels will also be important markers of turnaround momentum.

Hain Celestial currently trades at $1.21, up from $1.07 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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What Happened?

Shares of natural food company Hain Celestial jumped 13.1% in the afternoon session after the company reported mixed third-quarter financial results, where a revenue beat and a positive outlook seemed to outweigh a wider-than-expected loss. 

The natural food company posted an adjusted loss of eight cents per share, which missed analyst expectations for a five-cent loss. However, quarterly sales of $367.9 million came in ahead of the $360.5 million Wall Street had anticipated, even though sales declined by 6.8% compared to the previous year. Despite the earnings miss, management provided an encouraging outlook. The company noted it was seeing benefits from cost discipline and pricing actions. Furthermore, Hain Celestial expected stronger revenue and profit in the second half of its fiscal year and anticipated generating positive free cash flow for the full year, which appeared to boost investor confidence.

The shares closed the day at $1.22, up 14.6% from previous close.

Is now the time to buy Hain Celestial? Access our full analysis report here.

What Is The Market Telling Us

Hain Celestial’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. But moves this big are rare even for Hain Celestial and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 49% on the news that the company reported underwhelming first quarter 2025 results as it missed across revenue, EPS, and EBITDA, and its full-year EBITDA guidance fell short of Wall Street's estimates. Revenue was down 11%, and margins slipped a bit too, hurt by heavier discounting and slower demand. Overall, this quarter could have been better.

Hain Celestial is down 80% since the beginning of the year, and at $1.20 per share, it is trading 86.1% below its 52-week high of $8.63 from December 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $38.97.

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