Helen of Troy Limited HELE is likely to register a top-and bottom-line decline when it reports second-quarter fiscal 2024 earnings on Oct 4. The Zacks Consensus Estimate for revenues is pegged at $485.5 million, suggesting a drop of 6.9% 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 $1.60 per share. The projection indicates a decline of 29.5% from the figure reported in the year-ago period quarter.
Helen of Troy has a trailing four-quarter earnings surprise of 8.1%, on average. The leading consumer products player reported an earnings surprise of 19.8% in the last reported quarter.
Things To Note
Helen of Troy is battling a challenging operating landscape, hurting its performance. The company is battling pressure on some categories due to reduced consumer demand and changes in buying patterns. Inflationary pressures, higher interest rates and increasing household debt are compelling consumers to cut down on discretionary purchases. The persistence of these trends might have been a headwind in the quarter to be reported.
For the second quarter of fiscal 2024, Helen of Troy envisions a net sales decline of 6-8% year over year. In its last earnings call, management highlighted that it anticipates a decline in adjusted earnings per share (EPS) of 20-30% in the first half of fiscal 2024.
Helen of Troy Limited Price and EPS Surprise
Helen of Troy Limited price-eps-surprise | Helen of Troy Limited Quote
Nevertheless, the company is focused on making solid investments in its Leadership Brands. Management is on track to continue investing in key growth areas as part of its transformation efforts. HELE is progressing well with Project Pegasus, which aims to expand operating margins via improved efficiency and lower costs.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Helen of Troy currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right elements to beat on earnings this time.
Flowers Foods FLO currently has an Earnings ESP of +1.54% and carries a Zacks Rank #2. The company will likely register top-line growth when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for FLO’s quarterly revenues is pegged at $1.2 billion, indicating a rise of 5.2% 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 Flowers Foods’ quarterly earnings per share of 28 cents suggests a drop of 6.7% from the year-ago quarter’s levels. FLO has a trailing four-quarter earnings surprise of 7.6% on average.
Lamb Weston LW currently has an Earnings ESP of +4.24% and a Zacks Rank of 2. LW will likely witness top-and-bottom-line growth when it reports first-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings is pegged at $1.08 per share, suggesting a 44% rise from the year-ago fiscal quarter’s reported number.
The consensus estimate for Lamb Weston’s quarterly revenues is pegged at $1.6 billion, implying a 41.2% increase from the figure reported in the prior-year fiscal quarter. LW delivered an earnings beat of 44.8%, on average, in the trailing four quarters.
Kellogg Company K has an Earnings ESP of +0.42% and a Zacks Rank of 3. The company is likely to register top-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for K’s quarterly revenues is pegged at $4.1 billion, indicating an increase of 2.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg’s quarterly earnings of 94 cents suggests a growth of 6.9% from the year-ago quarter’s levels. K has a trailing four-quarter earnings surprise of 9.7%, on average.
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