Hain Celestial Downgraded By Barclays After 24% Selloff

On Monday evening, Hain Celestial Group Inc (NASDAQ: HAIN) issued a press release, formally announcing a delay in its F4Q16 and FY16 earnings report. Shares are down more than 28 percent at $38.38 in pre-market trading.

Barclays’ Andrew Lazar downgraded the rating on the company from Overweight to Equal-Weight, while lowering the price target from $51 to $43.

Delayed Report

Lazar mentioned that the delay in the earnings report was due to an independent review by Hain Celestial’s audit committee “into the timing of its revenue recognition, as well as a broader evaluation of its internal controls over financial reporting.”

The company also indicated that it didn't expect to achieve its FY16 guidance, although the analyst believes this is unrelated to the delay in reporting earnings.

Extension For 10-K

In addition, “HAIN expects to file with the SEC to obtain an automatic 15-day extension to file its Form 10-K, though the company can provide “no assurance” it will be able to file its 10-K during this extension period,” Lazar stated.

Uncertain Outcome

The analyst expressed concern regarding the uncertainty surrounding the potential outcome and time frame of the review, although there was no guarantee that the outcome would be meaningfully unfavorable.

Lazar would prefer to remain on the sidelines till there is more clarity, while noting that he was “not yet able to rule out the potential need for a restatement of financials that could materially differ from previous filings.”

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!