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Helen of Troy (HELE) to Report Q2 Earnings: What's in Store?

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Helen of Troy Limited (HELE - Free Report) is likely to register declines in the top and the bottom line, when it reports second-quarter fiscal 2022 numbers on Oct 7. The Zacks Consensus Estimate for revenues is pegged at $433.6 million, suggesting a decline of 18.3% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has remained unchanged in the past 30 days at $2.13 per share, which suggests a slump of 43.5% from the figure reported in the prior-year period. This designer, developer and distributor of consumer products has a trailing four-quarter earnings surprise of 28.2%, on average. In the last reported quarter, Helen of Troy posted an earnings surprise of 33.3%.

 

Things To Note

Helen of Troy is encountering challenges related to concerns raised by the Environmental Protection Agency (“EPA”) on the packaging for Air Products and affected humidifiers. Management, in its last earnings call, highlighted that it expects to see significant headwind in the Health and home sales stemming from the EPA matter during second-quarter fiscal 2022. Shipping restrictions and unfavorable year-over-year comparisons are likely to have had a negative impact on the bottom line. Elevated freight costs are also a concern.

That being said, Helen of Troy is benefiting from its focus on Leadership Brands, which is a portfolio of market-leading brands. The company is gaining from its strong online operations and digital marketing endeavors. Also, focus on key growth areas as part of its Phase II Transformation effort bodes well.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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 sports a Zacks Rank #1 and carries an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

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

Conagra Brands, Inc. (CAG - Free Report) currently has an Earnings ESP of +0.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +3.82% and carries a Zacks Rank #3.

Hormel Foods Corporation (HRL - Free Report) currently has an Earnings ESP of +0.53% and carries a Zacks Rank #3.

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