Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of organic and natural food products company Hain Celestial (NAS: HAIN) jumped as much as 20% earlier in the trading session after the company reported better-than-expected fourth-quarter results.

So what: For the quarter, Hain reported an 82% jump in net income to $0.47 (with one-time items excluded) on a 22% increase in revenue to $350.8 million. Although revenue fell short of what analysts had been looking for (a common theme in the third quarter), Hain did beat EPS estimates by $0.02. Furthermore, Hain forecast a full-year 2013 profit of $2.10-$2.20 on revenue of $1.6 billion-$1.615 billion. While revenue met Wall Street's estimates, even the low end of the EPS range is higher than the $2.08 consensus figure. In addition to its quarterly report, Hain also announced the acquisition of Britain's Premier Foods' sweet spreads and jellies business for $316 million.


Now what: Simply put, Hain Celestial keeps delivering, period! I had been worried that rising input prices and Hain's organic products, which naturally carry higher prices than non-organic foods, might deter some shoppers from buying. This was the same thesis I had when I discussed the potential pitfalls that could await Whole Foods Market (NAS: WFM) . However, neither Hain nor Whole Foods appears to be feeling any backlash from rising costs or slowing consumer spending. Consumers, if anything, are willing to pay more if they get more nutritious food.

Hain continues to find itself in the sweet spot, capable of growth organically (Oh look, I made a funny!) and through acquisition. With health-awareness among consumers still rising, I see no reason to assume Hain won't continue to be an outperformer moving forward.

Craving more input? Start by adding Hain Celestial to your free and personalized watchlist so you can keep up on the latest news with the company.

Also, to get the full scoop on what opportunities and pitfalls await the organic food sector, get your copy of our latest premium research report on Whole Foods Market. In addition to unbiased and in-depth analysis, you also get a full year of updates. Get your investing edge now by clicking here to get this report.

The article Why Hain Celestial Shares Spiked originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool owns shares of Hain Celestial and Whole Foods Market. Motley Fool newsletter services have recommended buying shares of Hain Celestial and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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