On Tuesday, shares of specialty snack food company Hain Celestial (NASDAQ:HAIN) are plunging, down over 27% in morning trading after it announced it will delay its fiscal 2016 earnings report due to accounting problems.
Hain was originally supposed to report earnings for its fiscal fourth quarter this week, but is reassessing the ways in which it had accounted for some of its revenue.
"During the fourth quarter, the Company identified concessions that were granted to certain distributors in the United States. The Company is currently evaluating whether the revenue associated with those concessions was accounted for in the correct period and is also currently evaluating its internal control over financial reporting,” said Hain in a statement.
Hain also said it expects to miss sales and profit guidance for the year ended June 30.
The company’s last forecast was issued this past May, with sales projected to fall in the range of $2.95 billion to $2.97 billion, increasing 9-10% from the previous year. EPS was expected to be in the range of $2.00 to $2.04 share, a rise of about 6-9% compared with fiscal 2015.
Hain is known for its organic and natural products, including Earth’s Best organic baby food, Health Valley soups, cereals, and snack bars, and BluePrint cold-pressed juice. It’s a popular organic supplier to Whole Foods Market (NASDAQ:WFM) , Walmart (NYSE:WMT) , and Kroger (NYSE:KR) , among others.
HAIN stock is up over 32% year-to-date, and is a #4 (Sell) on the Zacks Rank.
HAIN CELESTIAL Price, Consensus and EPS Surprise
HAIN CELESTIAL Price, Consensus and EPS Surprise | HAIN CELESTIAL Quote
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