Helen of Troy Earnings: Streak of Four Straight Profit Rises SNAPPED

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Helen of Troy Limited (NASDAQ:HELE) reported its results for the first quarter. Helen of Troy is a global designer, developer, importer, and distributor of a portfolio of brand-name consumer products.

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Helen of Troy Limited Earnings Cheat Sheet

Results: Net income for Helen of Troy Limited fell to $23.5 million (74 cents per share) vs. $24.6 million (78 cents per share) a year earlier. This is a decline of 4.6% from the year-earlier quarter.

Revenue: Rose 10.6% to $300.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Helen of Troy Limited fell short of the mean analyst estimate of 88 cents per share. Analysts were expecting revenue of $299.1 million.

Quoting Management: Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company’s first quarter results, stated “During the first quarter, we achieved record net sales revenue and record operating income. Similar to other global consumer products companies, we faced many challenges in light of continuing consumer uncertainty and global economic problems. We are pleased that we were able to achieve growth in net sales revenue, operating income and EBITDA without share-based compensation, in a challenging retail sales environment.

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 45.6%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 69.5% from the year earlier quarter.

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 20.2% from the year earlier, while the figure increased 21.5% in the third quarter of the last fiscal year, 0.5% in the second quarter of the last fiscal year and 33.8% in the first quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 4 cents, and in the third quarter of the last fiscal year, it was ahead by 2 cents.

Margins rose in the fourth quarter of the last fiscal year after falling the quarter before. Gross margins grew to 99.9%, up 59.5 percentage points from the year-earlier quarter. In the third quarter of the last fiscal year, the figure rose 1.9 percentage points to 41.9% from the year earlier quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is 86 cents per share, a drop from 88 cents. For the fiscal year, the average estimate has moved up from $3.89 a share to $3.90 over the last ninety days.

Competitors to Watch: Deer Consumer Products, Inc., Jarden Corporation, Global-Tech Advanced Innovations Inc., The Procter & Gamble Co., Church & Dwight Co., Inc., Colgate-Palmolive Company, The Clorox Company, Kimberly-Clark Corporation, Johnson & Johnson, Teva Pharmaceutical Industries Ltd, CCA Industries, Inc., and Zep, Inc.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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