Things to Consider Before Helen of Troy's (HELE) Q3 Earnings
Helen of Troy Limited HELE is likely to register a top-line decline when it reports third-quarter fiscal 2024 earnings on Jan 8. The Zacks Consensus Estimate for revenues is pegged at $542.7 million, suggesting a drop of 2.9% from the prior-year quarter’s reported figure.
Nevertheless, the company’s bottom line is likely to increase year over year. The consensus mark for fiscal third-quarter earnings has remained unchanged in the past 30 days at $2.76 per share. The projection indicates growth of 0.4% from the figure reported in the year-ago period quarter.
Helen of Troy has a trailing four-quarter earnings surprise of 9.8%, on average. The leading consumer products player reported an earnings surprise of 8.8% in the last reported quarter.
Things To Consider
Helen of Troy is grappling with the adverse impact of a continued slower economy and uncertainty in spending patterns, mainly for discretionary categories. The company has been navigating the pressured consumer environment along with the structural headwinds of increased annual incentive compensation, depreciation and interest expenses. The continuation of such aspects remains a threat to the quarter under review.
In addition, the company has been witnessing softness across its Beauty & Wellness division due to low consumer demand. We expect a 7% net sales decline in the Beauty & Wellness segment for the to-be-reported quarter.
That being said, Helen of Troy is benefiting from investments in its Leadership Brands, which is a portfolio of market-leading brands. We expect leadership brand sales to grow 1.7% to $ $459 million in third-quarter fiscal 2024. Also, management is on track with Project Pegasus, which is aimed at expanding operating margins via improved efficiency and lower costs.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an 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 odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Helen of Troy carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Stocks With Favorable Combination
Here are three companies worth considering, as our model shows that these have the right elements to beat on earnings this time.
Mondelez International MDLZ currently has an Earnings ESP of +1.39% and a Zacks Rank #3. The company is likely to register top- and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Mondelez’s quarterly revenues is pegged at $9.2 billion, indicating a rise of nearly 6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings of 76 cents suggests an increase of 4.1% from the year-ago quarter’s levels. MDLZ has a trailing four-quarter earnings surprise of 7.3%, on average.
Philip Morris PM has an Earnings ESP of +6.25% and a Zacks Rank #3. The company is likely to witness top-and-bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Philip Morris’ quarterly revenues is pegged at $8.9 billion, which suggests a rise of 9.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Philip Morris’ quarterly earnings per share (EPS) has remained unchanged in the past 30 days at $1.48, calling for an increase of 6.5% from the year-ago quarter’s level. PM has a trailing four-quarter earnings surprise of 5.8%, on average.
Constellation Brands STZ has an Earnings ESP of +0.98% and currently carries a Zacks Rank #3. STZ is scheduled to report third-quarter fiscal 2024 earnings on Jan 5. The Zacks Consensus Estimate for Constellation Brands’ quarterly revenues is pegged at $2.6 billion, which suggests a rise of 4.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Constellation Brands’ quarterly EPS has moved up by a penny in the last seven days to $3.04, calling for an increase of 7.4% from the year-ago quarter’s level. STZ has a trailing four-quarter earnings surprise of 4.3%, on average.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
Constellation Brands Inc (STZ) : Free Stock Analysis Report
Helen of Troy Limited (HELE) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
