Market Overview

Is Helen of Troy's Current Management Guidance too Conservative?


Helen of Troy (NASDAQ: HELE), producer of popular personal care brands like Dr. Scholl's, Revlon and Sunbeam, is down around 5.1% since its April 27 earnings release vs around 5.0% for the S&P 500 Index.

In its April 27 release, the company reported Q4 adjusted earnings per share of 92 cents as compared to the 88 cent consensus estimate of two analysts who cover the stock.

The company also reported Q4 net sales revenue of around $294 million, a 24.0% increase from approximately $237 million in the same period of the prior year.

Analyst projections and management guidance of earnings per share growth are near or less than 12% for fiscal 2013. This might seem conservative compared to the company's actual reported earnings per share growth near 15% for fiscal 2012.

This potentially conservative management guidance was in contrast to CEO Gerald Rubin's statement in the company's conference call: “We expect the strength of our products along with our powerful brands and targeted growth initiatives will position Helen of Troy for another year of growth.”

Helen of Troy's price-to-earnings ratio currently rests around 9.2. Shares of the personal care product provider traded around 22 cents, or 0.7% higher today.

Disclosure: At the time of this writing, I did not own shares of any companies mentioned in this post.

Posted-In: Earnings Long Ideas News Trading Ideas Reviews


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