U.S. Markets closed
  • S&P Futures

    3,840.00
    +5.75 (+0.15%)
     
  • Dow Futures

    30,952.00
    +43.00 (+0.14%)
     
  • Nasdaq Futures

    13,388.50
    +27.00 (+0.20%)
     
  • Russell 2000 Futures

    2,163.40
    -0.60 (-0.03%)
     
  • Crude Oil

    52.19
    -0.08 (-0.15%)
     
  • Gold

    1,856.00
    -0.20 (-0.01%)
     
  • Silver

    25.61
    +0.05 (+0.21%)
     
  • EUR/USD

    1.2170
    -0.0003 (-0.0243%)
     
  • 10-Yr Bond

    1.0910
    -0.0180 (-1.62%)
     
  • Vix

    21.91
    +0.59 (+2.77%)
     
  • GBP/USD

    1.3688
    -0.0043 (-0.3121%)
     
  • USD/JPY

    103.8000
    +0.2950 (+0.2850%)
     
  • BTC-USD

    32,148.53
    +354.20 (+1.11%)
     
  • CMC Crypto 200

    651.44
    +41.45 (+6.79%)
     
  • FTSE 100

    6,695.07
    -20.35 (-0.30%)
     
  • Nikkei 225

    28,631.45
    -125.45 (-0.44%)
     

Results: Helen of Troy Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Simply Wall St
·4 min read

Helen of Troy Limited (NASDAQ:HELE) investors will be delighted, with the company turning in some strong numbers with its latest results. Helen of Troy delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting US$638m, some 16% above indicated. Statutory EPS were US$3.34, an impressive 23% ahead of forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Helen of Troy

earnings-and-revenue-growth
earnings-and-revenue-growth

Following last week's earnings report, Helen of Troy's five analysts are forecasting 2022 revenues to be US$2.02b, approximately in line with the last 12 months. Statutory earnings per share are predicted to ascend 11% to US$10.09. Before this earnings report, the analysts had been forecasting revenues of US$2.03b and earnings per share (EPS) of US$10.16 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 7.0% to US$255despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Helen of Troy's earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Helen of Troy analyst has a price target of US$250 per share, while the most pessimistic values it at US$235. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with the forecast 0.6% revenue decline a notable change from historical growth of 5.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.4% annually for the foreseeable future. It's pretty clear that Helen of Troy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Helen of Troy's revenues are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Helen of Troy analysts - going out to 2023, and you can see them free on our platform here.

It might also be worth considering whether Helen of Troy's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.