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All You Should Know Before Helen of Troy's (HELE) Q2 Earnings

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Helen of Troy Limited (HELE - Free Report) is likely to register an increase in the top and the bottom line when it reports second-quarter fiscal 2021 numbers on Oct 8. The Zacks Consensus Estimate has moved up 1.7% in the past seven days to $2.39 per share, which suggests a 6.7% increase from the figure reported in the prior-year period. Notably, Helen of Troy delivered an earnings surprise of 61.2% in the last reported quarter. Also, this consumer products company has a trailing four-quarter earnings surprise of 28.3%, on average.

The Zacks Consensus Estimate for revenues is pegged at $447 million, indicating a rise of about 8% from the prior-year quarter’s reported figure.

Key Factors to Note

Helen of Troy’s Health and Home unit has been benefiting from higher demand amid the pandemic. Apart from this, the company’s online strength and contribution from Drybar Products’ acquisition have been aiding. Notably, Helen of Troy has been gaining from strength of its Leadership Brands, which account for a significant chunk of sales. Its constant investments in these brands that include Drybar Products, Vicks, OXO and Honeywell to name some have been delivering robust results.

Helen of Troy Limited Price and EPS Surprise

Helen of Troy Limited Price and EPS Surprise

Helen of Troy Limited price-eps-surprise | Helen of Troy Limited Quote

In its first-quarter conference call, management noted that growth at OXO brand continued in the second quarter of fiscal 2021. Also, sales at Hydro Flask improved strongly since early May — via robust online growth and gradual customer store reopenings. Markedly, the company has been on track to make continued online investments to keep pace with the evolving consumer environment.

That said, Helen of Troy’s Beauty segment sales were somewhat affected by customer store closures, weak personal care business, lower discretionary demand, supply hurdles for a key product as well as currency-related challenges in the last reported quarter. Nonetheless, management in its conference call stated that it expects improved trends in these segments, as stores gradually reopen.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Helen of Troy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Helen of Troy currently has a Zacks Rank #2 and an Earnings ESP of +0.73%.

Other Stocks With Favorable Combinations

Here are some other companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat this season.

Newell Brands (NWL - Free Report) has an Earnings ESP of +37.16% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kimberly-Clark (KMB - Free Report) has an Earnings ESP of +2.65% and a Zacks Rank #2.

Philip Morris (PM - Free Report) has an Earnings ESP of +2.41% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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