What Happened?
Shares of natural food company Hain Celestial (NASDAQ: HAIN) fell 49% in the afternoon session after 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.
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, it’s free.
What The Market Is Telling Us
Hain Celestial’s shares are extremely volatile and have had 40 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 previous big move we wrote about was 21 days ago when the stock dropped 6.8% on the news that Federal Reserve Chair Jerome Powell signaled a cautious stance on future monetary policy decisions during a speech in Chicago, emphasizing that trade tariffs could add upward pressure to inflation in the short term and complicate the Fed's efforts to stabilize the economy. He warned that such trade measures are "likely to move us further away from our goals," referring to the Fed's dual mandate of price stability and maximum employment.
The comments did little to improve sentiment, as major indices were already in the negative territory in the morning session after Nvidia announced it might be unable to sell some high-end chips (including the H20 chips) to China due to export controls and requirements from the Trump administration. As a result, the company planned to take a $5.5 billion charge due to inventory write-downs and canceled sales.
Adding to the sector's pressure, chip tool maker ASML posted weak bookings (a key demand indicator) which fell below Wall Street's expectations, noting that tariffs had made the industry's outlook more uncertain. Taken together, these updates likely fueled investor anxiety, amplifying concerns about global trade tensions, tech sector vulnerability, and the Fed's limited room to maneuver in an increasingly uncertain macro environment.
Hain Celestial is down 77.3% since the beginning of the year, and at $1.36 per share, it is trading 85% below its 52-week high of $9.09 from October 2024. Investors who bought $1,000 worth of Hain Celestial’s shares 5 years ago would now be looking at an investment worth $47.45.
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