Share what you think is the most interesting about this story:
Hain Celestial Group Inc., maker of Earth's Best organic baby food and BluePrint cold-pressed juice, on Monday said will delay its annual earnings report due to accounting issues, sending its stock down 25% in after-hours trading.
The company separately said it doesn't expect to reach its anticipated sales and profit levels for the year ended June 30.
Hain HAIN, -0.13% was expected to report earnings for its fiscal fourth quarter this week but said it is reconsidering the way it accounts for some of its revenue. Hain also said it is "evaluating its internal control over financial reporting," suggesting the company suspects its revenue issue may be related to flaws in its procedures that help ensure its financial statements are accurate. Companies are required to evaluate those internal procedures each year, disclosing and correcting any "material weaknesses" they find.
Hain's shares were up 32% year-to-date, as investors anticipated an acquisition, but the accounting issues could deter potential buyers. If Hain's stock decline persists when the market opens Tuesday, it will have lost $1.3 billion of its market value overnight.
Hain said it will delay its earnings until its has completed an independent review, for which it has tapped outside counsel.
the most interesting thing about this story is that the company is admitting on its weaknesses publicly where the competitors... View the full answer