Hain shares rise after 3Q profit matches Street estimates

NEW YORK—Shares of Hain Celestial Group Inc., which makes natural and organic food and personal care products, jumped Monday after the company's fiscal third-quarter profit matched the estimates of Wall Street analysts.

Shares rose 89 cents, or 3.6 percent, to $25.51.

Before the market opened, Hain reported its profit fell 33 percent on one-time costs and expenses, but adjusted profit met analyst projections.

The company also reported its revenue climbed 11 percent, helped by a shift by consumers to eating at home more rather than out at restaurants, where higher menu prices have taken a toll on traffic.

Hain also narrowed its 2008 guidance to a range of $1.38 to $1.40 per share from a previous forecast of $1.38 to $1.42 per share.

UBS analyst David Palmer said in a note that the quarterly report "should be a heartening update" for Hain's investors since many were concerned the company's profit would miss Wall Street estimates or that Hain would substantially cut its profit guidance for the year.

The shares had been trading close to their 52-week low of $24.20 for the past two weeks. Since the start of the year, the stock price had dropped 23 percent until Monday's boost.

"We believe now is a good time to buy Hain shares," he said.