Helen of Troy (HELE) Q1 Results: Things to Watch Out For

Helen of Troy Limited HELE will likely report a decline in revenue and net earnings when it reports first-quarter fiscal 2025 results on July 9. The Zacks Consensus Estimate for quarterly net sales is $446.2 million, down nearly 6% from the figure reported in the same quarter a year ago.

The consensus for fiscal first-quarter earnings remains unchanged at $1.59 per share over the past 30 days. The estimate indicates an 18% decline from the year-ago quarter.

HELE has an average earnings surprise of 8.9% for the last four quarters. The leading consumer goods player posted an earnings surprise of 6.1% in the last reported quarter.

Things worth knowing

Helen of Troy is facing challenges from declining sales, which are being driven by continued pressure on consumer spending and uncertainty in the discretionary product category. Continued inflation, higher interest rates and lower household savings levels are forcing consumers to be cautious with their money. In addition, concerns are being raised about lowered growth forecasts from specific retailers.

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

Helen of Troy also saw a weakening in its Beauty & Wellness business due to lower consumer demand. Our model suggests Beauty & Wellness net sales declined 12.8% in the fiscal first quarter.

The factors mentioned above will most likely be reflected in the reported quarter.

What the Zacks Model Reveals

Our proven model does not predict a definitive 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 probability of an earnings beat. You can discover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

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

Some stocks with a favorable combination

Here are a few companies to consider because our model shows they have the right combination of elements to outperform financially this reporting cycle.

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

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

Chlorox CLX currently has an Earnings ESP of +2.14% and a Zacks Rank of 3. The company is likely to see a decline in revenues and earnings when it reports its fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for Clorox’s quarterly revenue is $1.98 billion, down 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 decline of 8.4% from the prior-year quarter’s levels. Clorox has an average earnings surprise of 128.5% for the trailing four quarters.

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 earnings per share is $3.66, suggesting year-over-year growth of 18.8%.

The Zacks Consensus Estimate for Domino’s Pizza’s quarterly revenue is $1.1 billion, representing an increase of 7.8% from the figure reported in the year-ago quarter. DPZ has seen an average earnings surprise of 9.3% over the trailing four quarters.

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