Shelf-Stable Food Stocks Q4 Results: Benchmarking Hain Celestial (NASDAQ:HAIN)
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Hain Celestial (NASDAQ:HAIN) and the best and worst performers in the shelf-stable food industry.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 20 shelf-stable food stocks we track reported a mixed Q4; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 10.6% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the shelf-stable food stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.1% on average since the previous earnings results.
Hain Celestial (NASDAQ:HAIN)
Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Hain Celestial reported revenues of $454.1 million, flat year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a miss on key line items including revenue and EPS estimates.
“We are pleased with the continued progress we are making on key pillars of our Hain Reimagined strategy, generating fuel through working capital management and productivity savings, driving growth through channel expansion and building our organizational capabilities to scale our brands, expand our margins, and transform our business for sustained performance,” said Wendy Davidson, President and Chief Executive Officer.
The stock is down 44.6% since the results and currently trades at $6.29.
Is now the time to buy Hain Celestial? Access our full analysis of the earnings results here, it's free.
Best Q4: Post (NYSE:POST)
Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Post reported revenues of $1.97 billion, up 25.5% year on year, outperforming analyst expectations by 2.4%. It was an exceptional quarter for the company, with an impressive beat of analysts' gross margin, operating profit, EBITDA, and EPS expectations. Its revenue growth also topped estimates, driven by strong top-line performance in its Post Consumer segment ($989 million of revenue vs consensus estimates of $905 million).
Post pulled off the fastest revenue growth among its peers. The stock is up 6.9% since the results and currently trades at $100.3.
Is now the time to buy Post? Access our full analysis of the earnings results here, it's free.
Weakest Q4: J&J Snack Foods (NASDAQ:JJSF)
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ:JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
J&J Snack Foods reported revenues of $348.3 million, down 0.9% year on year, falling short of analyst expectations by 4%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
The stock is down 12.2% since the results and currently trades at $136.38.
Read our full analysis of J&J Snack Foods's results here.
Kellanova (NYSE:K)
With Corn Flakes as its first and most iconic product, Kellanova (NYSE:K) is a packaged foods company that is dominant in the cereal and snack categories.
Kellanova reported revenues of $3.17 billion, flat year on year, surpassing analyst expectations by 3.1%. It was a decent quarter for the company, with an impressive beat of analysts' organic revenue growth estimates, leading to a reported revenue beat. Full year guidance was maintained, with revenue and operating profit above expectations at the midpoint but EPS slightly below.
The stock is up 5% since the results and currently trades at $56.36.
Read our full, actionable report on Kellanova here, it's free.
Simply Good Foods (NASDAQ:SMPL)
Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ:SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.
Simply Good Foods reported revenues of $312.2 million, up 5.3% year on year, falling short of analyst expectations by 1.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
The stock is down 1.3% since the results and currently trades at $32.14.
Read our full, actionable report on Simply Good Foods here, it's free.
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