Helen of Troy Limited Beats Estimates on Top and Bottom Lines

Helen of Troy Limited (Nasdaq: HELE  ) reported earnings on Jan. 5. Here are the numbers you need to know.

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
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.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
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.

Investor sentiment
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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