Helen of Troy Limited Earnings: Here’s Why Investors are Excited Now

Helen of Troy Limited (NASDAQ:HELE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4%.

Helen of Troy Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.81% to $0.82 in the quarter versus EPS of $0.74 in the year-earlier quarter.

Revenue: Rose 1.43% to $304.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Helen of Troy Limited reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.71. It beat the average revenue estimate of $301.5 million.

Quoting Management: Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company’s fiscal year 2014 first quarter results, stated, “We are off to a solid start in fiscal year 2014. Growth in our Housewares and Healthcare/Home Environment segments led to a net sales revenue increase for the Company, and we managed expenses well to deliver a 6.5% increase in adjusted EBITDA (EBITDA without non-cash asset impairment charges and non-cash share-based compensation) and a 10.8% increase in adjusted diluted EPS (diluted earnings per share without non-cash asset impairment charges). We continue to focus on innovation and are excited about our upcoming product launches in the baking and food storage categories in our Housewares segment and in the water filtration portion of our Healthcare/Home Environment segment. Our balance sheet remains strong and provides us with excellent flexibility to pursue our growth strategies. We remain comfortable with our outlook and in our ability to deliver on the objectives we have set for ourselves this year.”

Key Stats (on next page)…

Revenue decreased 6.61% from $326.04 million in the previous quarter. EPS decreased 16.33% from $0.98 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.80 to a profit $0.75. For the current year, the average estimate has moved down from a profit of $3.83 to a profit of $3.53 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)