Helen of Troy Limited Earnings: Profit Rises Behind Revenue Boost

Helen of Troy Limited (NASDAQ:HELE) reported higher profit for the second quarter as revenue showed growth. Helen of Troy is a global designer, developer, importer, and distributor of a portfolio of brand-name consumer products. It has two segments: Personal Care and Housewares.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

Helen of Troy Earnings Cheat Sheet for the Second Quarter

Results: Net income for Helen of Troy Limited rose to $23.6 million (74 cents per share) vs. $23.5 million (75 cents per share) in the same quarter a year earlier. This marks a rise of 0.5% from the year earlier quarter.

Revenue: Rose 58.7% to $277.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HELE fell short of the mean analyst estimate of 86 cents per share. It fell short of the average revenue estimate of $288.8 million.

Quoting Management: Gerald J. Rubin, Chairman, Chief Executive Officer and President, commenting on the Company’s results, stated “We are extremely pleased with our record sales and record earnings for the second quarter and year to date in a difficult retail environment. Operating income increased by 9.7 and 21.1 percent for the three- and six-months ended August 31, 2011. The integration of Kaz continues to progress well and according to our expectations. The impact of seasonality on our consolidated results has become more pronounced with the addition of our new Healthcare / Home Environment segment. We expect that a significant portion of the new segment’s operating income will be earned in the last two quarters of the fiscal year.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 33.8% and in the fourth quarter of the last fiscal year, the figure rose 46.3%.

Gross margin shrank 5.4 percentage points to 40.5%. The contraction appeared to be driven by increased costs, which rose 74.7% from the year earlier quarter while revenue rose 58.7%.

Revenue has risen the past four quarters. Revenue increased 69.5% to $271.5 million in the first quarter. The figure rose 55.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by one cent with net income of 78 cents versus a mean estimate of net income of 79 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 96 cents per share, down from 99 cents ninety days ago. For the fiscal year, the average estimate has moved down from $3.40 a share to $3.34 over the last thirty days.

Competitors to Watch: Deer Consumer Products, Inc. (NASDAQ:DEER), Jarden Corporation (NYSE:JAH), iRobot Corporation (NASDAQ:IRBT), Global-Tech Advanced Innovations Inc. (NASDAQ:GAI), The Procter & Gamble Co. (NYSE:PG), Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Company (NYSE:CL), The Clorox Company (NYSE:CLX), Kimberly-Clark Corporation (NYSE:KMB), Johnson & Johnson (NYSE:JNJ), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), CCA Industries, Inc. (AMEX:CAW), and Zep, Inc. (NYSE:ZEP).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)