Helen of Troy (HELE) Q1 Earnings Coming Up: Factors to Note

Zacks Equity Research

July 5, 2024 at 10:02 a.m.·4 min read

Helen of Troy Limited HELE is likely to register top- and bottom-line decline when it reports first-quarter fiscal 2025 earnings on Jul 9. The Zacks Consensus Estimate for quarterly net sales is pegged at $446.2 million, suggesting a decline of almost 6% from the prior-year quarter’s reported figure.

The consensus mark for fiscal first-quarter earnings has remained unchanged in the past 30 days at $1.59 per share. The projection indicates a decline of 18% from the figure reported in the year-ago quarter.

HELE has a trailing four-quarter earnings surprise of 8.9%, on average. The leading consumer products player reported an earnings surprise of 6.1% in the last reported quarter.

Things to Know

Helen of Troy has been facing challenges stemming from declining sales, influenced by ongoing pressures on consumer spending and uncertainties in discretionary product categories. Persistent inflation, increased interest rates and lower levels of household savings are compelling consumers to be prudent with their money. In addition, reduced growth projections from specific retailers are a concern.

Management anticipates a sales decline of 7% to 5% in first-quarter fiscal 2025. The company expects an adjusted earnings per share (EPS) decline of 15-20% in the to-be-reported quarter.

Helen of Troy has also been witnessing softness across its Beauty & Wellness division stemming from lower consumer demand. Our model suggests a 12.8% net sales decline in Beauty & Wellness for the fiscal first quarter.

The factors mentioned above are likely to be reflected in the quarter to be reported.

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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Kimberly-Clark Corporation KMB currently has an Earnings ESP of +2.25% and a Zacks Rank #3. The company is likely to register a decline in the top line when it reports second-quarter 2024 numbers. The consensus mark for revenues is pegged at $5.08 billion, suggesting a drop of 1.1% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Kimberly-Clark’s quarterly EPS of $1.67 suggests a 1.2% increase from the year-ago quarter. KMB has a trailing four-quarter earnings surprise of 11.3%, on average.

Clorox CLX currently has an Earnings ESP of +2.14% and a Zacks Rank of 3. The company is likely to register a top- and bottom-line decline when it reports fourth-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.98 billion, calling for a decline of almost 2% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Clorox’s quarterly earnings of $1.53 suggests a drop of 8.4% from year-ago quarter’s levels. Clorox has a trailing four-quarter earnings surprise of 128.5%, on average.

Domino's Pizza, Inc. DPZ currently has an Earnings ESP of +2.18% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2024 EPS is pegged at $3.66, which suggests 18.8% growth year over year.

The Zacks Consensus Estimate for Domino's Pizza’s quarterly revenues is pegged at $1.1 billion, which indicates a rise of 7.8% from the figure reported in the prior-year quarter. DPZ has a trailing four-quarter earnings surprise of 9.3%, on average.

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

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Domino's Pizza Inc (DPZ) : Free Stock Analysis Report

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Things to Know

What the Zacks Model Unveils

Some Stocks With the Favorable Combination

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