Hain Celestial Group shares plunged Wednesday after the maker of organic products reported second-quarter results that missed Wall Street estimates and said it is exploring the divestiture of one business.
Shares of the Lake Success, N.Y.-based maker of Celestial Seasons Tea, Arrowhead Mills organic baking products and other health-related brands dropped 6.3% at $34.07 in morning trading.
Although both measures represented gains, the consensus estimates of financial analysts surveyed by FactSet called for earnings per share of 42 cents on net income of $44.1 million.
The company announced it is exploring a divestiture of the Hain Pure Protein business, but cautioned it "cannot give any assurances that this will result in any specific action."
Irwin David Simon, Hain Celestial's CEO and chairman, characterized the potential divestiture as a move to simplify the company's brand portfolio during a conference call with investors and financial analysts.
Hain Celestial also updated its financial guidance for 2018 to take into account continued investment in marketing, primarily in the U.S, as well as freight and commodity price headwinds.
Hain Celestial also projected adjusted earnings per diluted share of $1.64 to $1.75, including an 8-cent to 9-cent benefit from the federal tax overhaul approved in December.
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