Helen of Troy Set to Release Q3 Earnings: Should You Expect a Beat?

Helen of Troy Limited HELE is likely to register a top and bottom-line decline when it reports third-quarter fiscal 2025 earnings on Jan. 8. The Zacks Consensus Estimate for revenues is pegged at $530.4 million, implying a 3.5% decrease from the prior-year quarter’s reported figure.The consensus mark for earnings has remained unchanged in the past 30 days at $2.61 per share, indicating a 6.5% fall from the figure reported in the year-ago period. HELE has a trailing four-quarter negative earnings surprise of 4.6%, on average.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Helen of Troy Limited Price, Consensus and EPS Surprise Helen of Troy Limited price-consensus-eps-surprise-chart | Helen of Troy Limited QuoteFactors Likely to Influence HELE’s Upcoming ResultsHelen of Troy is navigating a challenging macroeconomic environment characterized by reduced consumer and retailer demand. Consumers are facing financial constraints and prioritizing essential purchases over discretionary items. This has been impacting the company’s sales. We expect a 4% drop in organic volumes in the third quarter.Helen of Troy has also been grappling with rising SG&A expenses. In the second quarter, the rise in the consolidated SG&A ratio was mainly due to elevated marketing expenses, increased distribution center costs linked to automation issues at the Tennessee facility and unfavorable operating leverage. The persistence of any of these factors is a concern. Our model suggests a 90-basis point expansion in adjusted SG&A (as a percentage of sales) to 32.8% for the quarter under review.Due to external headwinds, including increased promotional activity, softer and more variable retail replenishment and ongoing macroeconomic pressures and uncertainty, management revised parts of its fiscal 2025 forecast in the second-quarter earnings release. This also raises concerns for the third quarter. For the third quarter of fiscal 2025, the company expects a decline in sales of 1-4.5%, while the adjusted EPS is likely to decrease 3-10%.However, strength in the Leadership Brands has been working well for Helen of Troy. The company’s strategic initiatives, focusing on strengthening core operations and refining its growth portfolio, have also been offering respite. By leveraging a data-driven approach, the company is improving brand fundamentals. Expansion efforts in key international markets and the optimization of distribution networks are expected to have aided sales performance. Apart from this, HELE’s global restructuring plan, Project Pegasus, is likely to have generated savings.Earnings Whispers for HELEOur proven model doesn’t conclusively predict an earnings beat for Helen of Troy this time. 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, which is not the case here.Helen of Troy carries a Zacks Rank #2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Some Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.Kimberly-Clark Corporation KMB currently has an Earnings ESP of +0.91% and a Zacks Rank of 3. The company is likely to register a top and bottom-line decline when it reports fourth-quarter 2024 numbers. The Zacks Consensus Estimate for Kimberly-Clark’s quarterly revenues is pegged at $4.85 billion, indicating a 2.4% decline 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 Kimberly-Clark’s quarterly earnings of $1.49 suggests a drop of 1.3% from the figure reported in the year-ago quarter. KMB has a trailing four-quarter earnings surprise of 12.1%, on average.The Simply Good Foods Company SMPL currently has an Earnings ESP of +5.50% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at 46 cents, which implies a roughly 7% increase year over year.The Zacks Consensus Estimate for The Simply Good Foods Company’s quarterly revenues is pegged at $348.1 million, which indicates growth of 12.8% from the figure reported in the prior-year quarter. SMPL has a trailing four-quarter earnings surprise of 5.3%, on average.Aramark ARMK currently has an Earnings ESP of +7.02% and a Zacks Rank of 3. The company is likely to register top and bottom-line growth when it reports first-quarter fiscal 2025 numbers. The Zacks Consensus Estimate for Aramark’s quarterly revenues is pegged at $4.62 billion, which suggests an increase of 4.7% from the prior-year quarter.The Zacks Consensus Estimate for Aramark’s quarterly earnings per share is pegged at 48 cents, indicating 17.1% growth from the year-ago period. ARMK has a trailing four-quarter earnings surprise of 8%, on average.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimberly-Clark Corporation (KMB): Free Stock Analysis Report Helen of Troy Limited (HELE): Free Stock Analysis Report The Simply Good Foods Company (SMPL): Free Stock Analysis Report Aramark (ARMK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks