Helen of Troy Limited
The 10-second takeaway
For the quarter ended Nov. 30 (Q3), Helen of Troy Limited beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share expanded significantly.
Margins contracted across the board.
Helen of Troy Limited recorded revenue of $339 million. The three analysts polled by S&P Capital IQ looked for a top line of $319 million. Sales were 65% higher than the prior-year quarter's $205 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $1.04. The three earnings estimates compiled by S&P Capital IQ predicted $1.02 per share. GAAP EPS of $1.04 for Q3 were 21% higher than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 39.3%, 590 basis points worse than the prior-year quarter. Operating margin was 12.3%, 290 basis points worse than the prior-year quarter. Net margin was 9.7%, 350 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $289 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $1.2 billion. The average EPS estimate is $3.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 75 members out of 101 rating the stock outperform, and 26 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Helen of Troy Limited a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Helen of Troy Limited is hold, with an average price target of $29.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.