Back to top

Image: Bigstock

Helen of Troy (HELE) Q2 Earnings Coming Up: Things to Note

Read MoreHide Full Article

Helen of Troy Limited (HELE - Free Report) is likely to register top-line growth when it reports second-quarter fiscal 2023 earnings on Oct 5, 2022. The Zacks Consensus Estimate for quarterly revenues is pegged at $519.1 million, suggesting an increase of 9.2% from the figure reported in the prior-year quarter.

Helen of Troy’s bottom line is likely to decline year over year. The Zacks Consensus Estimate for quarterly earnings dropped by a couple of cents in the past 30 days to $2.22 per share. The projection indicates a decline of 16.2% from the year-ago quarter’s reported figure. Helen of Troy has a trailing four-quarter earnings surprise of 22.5%, on average. This consumer products company delivered an earnings surprise of 24.2% in the last reported quarter.

Things To Note

Helen of Troy has been witnessing pressure from the rising inflationary environment. The company is also bearing the brunt of supply chain-related disruptions. The shift in consumer buying patterns amid rising costs is a headwind. Helen of Troy’s international presence exposes it to risks of unfavorable currency rates.

In its last earnings call, management highlighted that it expects a mid-teen decline in second-quarter fiscal 2023 adjusted earnings per share, mainly caused by reduced adjusted operating margin and increased interest expense. The company anticipates low double-digit growth in the to-be-reported quarter, as the year-ago quarter included the largest adverse impact from the Environmental Protection Agency ("EPA") matter.

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

 

Helen of Troy is benefiting from strength in the Home & Outdoor category. In this regard, contributions from Osprey (acquired in December 2021) brand fuel category growth. Helen of Troy is making major investments in key areas like consumer-centric innovation, digital marketing, enhanced production, distribution capacity and direct-to-consumer channels. The company is on track with cost savings endeavors to counter inflation and supply chain disruptions.

What the Zacks Model Unveils

Our proven model does not predict an earnings beat for Helen of Troy this time. 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 has an Earnings ESP of -3.50% and carries a Zacks Rank #4 (Sell).

Stocks With Favorable Combination

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

Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.04% and a Zacks Rank #3. K is expected to register top-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of around 4% from the prior-year quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kellogg's quarterly earnings has dropped by a penny in the past 30 days to 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.

Sysco Corporation (SYY - Free Report) currently has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is likely to register top-and bottom-line improvement when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly EPS of 99 cents suggests a 19.3% improvement from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Sysco’s quarterly revenues is pegged at $18.6 billion, indicating an improvement of 13.1% from the figure reported in the prior-year quarter. SYY has a trailing four-quarter earnings surprise of 3.6%, on average.

Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +9.23% and a Zacks Rank of 3. The company is likely to register a rise in the top line when it reports third-quarter 2022 results. The Zacks Consensus Estimate for BYND’s quarterly revenues is pegged at $113.3 million, which suggests a jump of 6.4% from the figure reported in the prior-year quarter.

The consensus mark for Beyond Meat’s bottom line improved by a penny in the past 30 days to a loss of $1.10 per share, compared with a loss of 87 cents reported in the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in