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What's in the Offing for Helen of Troy (HELE) in Q4 Earnings?
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Helen of Troy Limited (HELE - Free Report) is likely to witness a year-over-year decline in its top line when it reports fourth-quarter fiscal 2022 earnings on Apr 27. The Zacks Consensus Estimate for revenues is pegged at $472 million, suggesting a decline of 7.3% from the prior-year quarter’s reported figure. For fiscal 2022, the consensus mark for revenues stands at $2.1 billion, indicating growth of 0.8% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at $1.99 per share. This indicates a rise of 26.8% from the figure reported in the prior-year period. The consensus estimate for fiscal 2022 is presently pegged at $11.75 per share, suggesting a 0.9% increase from the figure reported in the year-ago period. Helen of Troy has a trailing four-quarter earnings surprise of 19.1%, on average. This consumer products company delivered an earnings surprise of 18.1% in the last reported quarter.
Helen of Troy Limited Price, Consensus and EPS Surprise
Helen of Troy’s sales in the last reported quarter fell year over year, hurt by a fall in organic business sales due to the U.S. Environmental Protection Agency’s ("EPA") packaging compliance matter and higher pandemic-related demand for healthcare and healthy living products in the prior year. Also, lower net sales revenues from the Non-Core business due to the sale of the North America Personal Care business hurt the metric. Such factors may have affected HELE’s sales in the quarter under review.
Also, the company saw higher inbound freight expenses and related price increases, elevated distribution costs, increased personnel expenses, unfavorable operating leverage and EPA compliance costs, among others, in the third quarter. On its last earnings call, management projected the year-over-year inflationary cost pressure in the range of $55-$60 million for fiscal 2022, which remains a concern for the fourth quarter.
However, the company is focused on investing in consumer-centric innovation, digital marketing and media, new packaging, enhanced production and distribution capacity as well as direct-to-consumer channels, among others. Management is on track to continue to invest in key growth areas as part of its Phase II Transformation efforts. Also, gains from Leadership Brands have been acting as an upside. Leadership Brands contributed more than 81% to the company's sales in fiscal 2021. The company's constant investments in these brands that are considered most productive have been delivering robust results. In December 2021, Helen of Troy concluded the buyout of Osprey Packs, Inc worth $414.7 million, which marked the company’s ninth Leadership Brand. On its last reported quarter’s earnings call, management highlighted that it expects Osprey to be already accretive to almost each key consolidated financial metric.
Raised Fiscal 2022 View
On its last earnings call, Helen of Troy stated that it witnessed initial positive trends in the fourth quarter, which encouraged management to raise its top and bottom-line view for fiscal 2022. HELE anticipates consolidated net sales between $2.10 billion and $2.12 billion, suggesting flat to 1% year-over-year growth. The company’s updated net sales view is based on the assumption that its Housewares segment’s net sales will grow 15-16% and the Beauty segment’s sales will increase by 13-14%. The Core Beauty segment’s sales are anticipated to increase by 26-27%. Meanwhile, management expects Health & Home net sales to decline by 19-20%, including a 6.7% decline due to the EPA matter.
Helen of Troy now envisions fiscal 2022 core net sales in the band of $2.06-$2.08 billion, indicating year-over-year growth of 2-3%. Excluding the impacts of the EPA matter, management expects core net sales growth of 5-6% for fiscal 2022. The company now expects fiscal 2022 consolidated adjusted earnings per share (EPS) in the band of $11.73-$11.93. Management expects core adjusted EPS in the $11.55-$11.75 range, implying growth of 4.7-6.5%, including a 2.7% impact of the EPA matter. Excluding the EPA matter, core EPS is expected to have increased by 7.4-9.2% year over year.
What the Zacks Model Unveils
Our proven model doesn’t conclusively 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, which is not the case here.
Helen of Troy currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
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 in the to-be-reported quarter.
Hershey (HSY - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Hershey’s revenues is pegged at $2,482 million, indicating growth of 8.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a rise of 9.4% from the year-ago quarter’s reported figure. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.
Inter Parfums ((IPAR - Free Report) ) has an Earnings ESP of +5.60% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Inter Parfums’ revenues is pegged at $219.4 million, indicating a rise of 10.5% from the year-ago quarter.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 83 cents per share, which suggests a decline of 4.6% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Church & Dwight Co., Inc. (CHD - Free Report) has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,287 billion, indicating an increase of 3.6% from the year-ago quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly EPS of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.
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What's in the Offing for Helen of Troy (HELE) in Q4 Earnings?
Helen of Troy Limited (HELE - Free Report) is likely to witness a year-over-year decline in its top line when it reports fourth-quarter fiscal 2022 earnings on Apr 27. The Zacks Consensus Estimate for revenues is pegged at $472 million, suggesting a decline of 7.3% from the prior-year quarter’s reported figure. For fiscal 2022, the consensus mark for revenues stands at $2.1 billion, indicating growth of 0.8% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for earnings has remained unchanged over the past 30 days at $1.99 per share. This indicates a rise of 26.8% from the figure reported in the prior-year period. The consensus estimate for fiscal 2022 is presently pegged at $11.75 per share, suggesting a 0.9% increase from the figure reported in the year-ago period. Helen of Troy has a trailing four-quarter earnings surprise of 19.1%, on average. This consumer products company delivered an earnings surprise of 18.1% in the last reported quarter.
Helen of Troy Limited Price, Consensus and EPS Surprise
Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote
Key Factors to Consider
Helen of Troy’s sales in the last reported quarter fell year over year, hurt by a fall in organic business sales due to the U.S. Environmental Protection Agency’s ("EPA") packaging compliance matter and higher pandemic-related demand for healthcare and healthy living products in the prior year. Also, lower net sales revenues from the Non-Core business due to the sale of the North America Personal Care business hurt the metric. Such factors may have affected HELE’s sales in the quarter under review.
Also, the company saw higher inbound freight expenses and related price increases, elevated distribution costs, increased personnel expenses, unfavorable operating leverage and EPA compliance costs, among others, in the third quarter. On its last earnings call, management projected the year-over-year inflationary cost pressure in the range of $55-$60 million for fiscal 2022, which remains a concern for the fourth quarter.
However, the company is focused on investing in consumer-centric innovation, digital marketing and media, new packaging, enhanced production and distribution capacity as well as direct-to-consumer channels, among others. Management is on track to continue to invest in key growth areas as part of its Phase II Transformation efforts. Also, gains from Leadership Brands have been acting as an upside. Leadership Brands contributed more than 81% to the company's sales in fiscal 2021. The company's constant investments in these brands that are considered most productive have been delivering robust results. In December 2021, Helen of Troy concluded the buyout of Osprey Packs, Inc worth $414.7 million, which marked the company’s ninth Leadership Brand. On its last reported quarter’s earnings call, management highlighted that it expects Osprey to be already accretive to almost each key consolidated financial metric.
Raised Fiscal 2022 View
On its last earnings call, Helen of Troy stated that it witnessed initial positive trends in the fourth quarter, which encouraged management to raise its top and bottom-line view for fiscal 2022. HELE anticipates consolidated net sales between $2.10 billion and $2.12 billion, suggesting flat to 1% year-over-year growth. The company’s updated net sales view is based on the assumption that its Housewares segment’s net sales will grow 15-16% and the Beauty segment’s sales will increase by 13-14%. The Core Beauty segment’s sales are anticipated to increase by 26-27%. Meanwhile, management expects Health & Home net sales to decline by 19-20%, including a 6.7% decline due to the EPA matter.
Helen of Troy now envisions fiscal 2022 core net sales in the band of $2.06-$2.08 billion, indicating year-over-year growth of 2-3%. Excluding the impacts of the EPA matter, management expects core net sales growth of 5-6% for fiscal 2022. The company now expects fiscal 2022 consolidated adjusted earnings per share (EPS) in the band of $11.73-$11.93. Management expects core adjusted EPS in the $11.55-$11.75 range, implying growth of 4.7-6.5%, including a 2.7% impact of the EPA matter. Excluding the EPA matter, core EPS is expected to have increased by 7.4-9.2% year over year.
What the Zacks Model Unveils
Our proven model doesn’t conclusively 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, which is not the case here.
Helen of Troy currently has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
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 in the to-be-reported quarter.
Hershey (HSY - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #2. It is anticipated to register a top and bottom-line increase when it reports first-quarter 2022 results. The Zacks Consensus Estimate for Hershey’s revenues is pegged at $2,482 million, indicating growth of 8.1% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a rise of 9.4% from the year-ago quarter’s reported figure. HSY delivered an earnings beat of 4.3%, on average, in the trailing four quarters.
Inter Parfums ((IPAR - Free Report) ) has an Earnings ESP of +5.60% and a Zacks Rank #2. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Inter Parfums’ revenues is pegged at $219.4 million, indicating a rise of 10.5% from the year-ago quarter.
The Zacks Consensus Estimate for Inter Parfums’ bottom line stands at 83 cents per share, which suggests a decline of 4.6% from the year-ago period’s reported figure. IPAR has a trailing four-quarter earnings surprise of 46.7%, on average.
Church & Dwight Co., Inc. (CHD - Free Report) has an Earnings ESP of +2.69% and a Zacks Rank #3. The company is expected to register top-line growth when it reports first-quarter 2022 results. The consensus mark for Church & Dwight’s revenues is pegged at $1,287 billion, indicating an increase of 3.6% from the year-ago quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly EPS of 76 cents suggests a decline of 8.4% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 8.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.