Helen of Troy Limited HELE is likely to register a top-and-bottom-line decline when it reports first-quarter fiscal 2024 earnings on Jul 10. The Zacks Consensus Estimate for revenues is pegged at $463 million, suggesting a drop of 8.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at $1.62 per share. The projection indicates a decrease of 32.8% from the figure reported in the year-ago period quarter. Helen of Troy has a trailing four-quarter earnings surprise of 9.3%, on average.
Factors to Consider
A tough operating landscape, including a shift in consumer spending patterns, and lower order levels from retail customers stemming from increased trade inventory levels have been downsides.
Helen of Troy Limited Price, Consensus and EPS Surprise
Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited Quote
Cost inflation has also been a hurdle. For fiscal 2024, management expects additional year-over-year expenses related to the restoration of annual incentive compensation expenses and increased interest and depreciation costs.
Apart from this, Helen of Troy’s Beauty & Wellness sales declined year over year in the last reported quarter and are anticipated to decrease by 5.8-8% in fiscal 2024. Management’s overall company sales and adjusted earnings per share (EPS) guidance for fiscal 2024 also suggests a year-over-year decline. These aspects raise concerns for the quarter under review.
However, strength in Leadership Brands has been aiding. Helen of Troy has also been on track to continue investing in key growth areas as part of its Phase II transformation efforts.
A focus on Project Pegasus bodes well. The plan aims to expand operating margins via initiatives designed to improve efficiency and reduce costs. Project Pegasus includes efforts to optimize the company’s brand portfolio, streamline and simplify the organization, grow the cost of goods savings projects and improve the efficiency of the supply-chain network.
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 chances of an earnings beat, which is not the case here.
Helen of Troy has an Earnings ESP of 0.00% and a Zacks Rank #2. 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 three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Kimberly-Clark KMB currently has an Earnings ESP of +6.94% and sports a Zacks Rank of 1. KMB is expected to register a top-and-bottom-line increase when it reports second-quarter 2023 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at roughly $5.1 billion, calling for growth of 0.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of $1.38 suggests a rise of around 3% from the figure reported in the year-ago fiscal quarter. KMB has a trailing four-quarter earnings surprise of 5.1%, on average.
Clorox CLX currently has an Earnings ESP of +12.11% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.9 billion, which implies a rise of 4.4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.14, which indicates 22.6% growth from the year-ago period figure. CLX has a trailing four-quarter earnings surprise of 25.5%, on average.
Kraft Heinz Company KHC currently has an Earnings ESP of +1.00% and a Zacks Rank #3. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Kraft Heinz’s quarterly revenues is pegged at $6.8 billion, which implies a rise of 4.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 75 cents, which indicates a 7.1% rise from the year-ago period figure. KHC has a trailing four-quarter earnings surprise of 10.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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