Earnings Miss: Helen of Troy Limited Missed EPS By 76% And Analysts Are Revising Their Forecasts

As you might know, Helen of Troy Limited (NASDAQ:HELE) last week released its latest quarterly, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with US$417m revenue coming in 6.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.26 missed the mark badly, arriving some 76% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Helen of Troy

After the latest results, the consensus from Helen of Troy's six analysts is for revenues of US$1.90b in 2025, which would reflect a perceptible 2.5% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to nosedive 23% to US$5.14 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.99b and earnings per share (EPS) of US$7.18 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 36% to US$82.00. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Helen of Troy analyst has a price target of US$105 per share, while the most pessimistic values it at US$67.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.4% by the end of 2025. This indicates a significant reduction from annual growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.9% per year. It's pretty clear that Helen of Troy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Helen of Troy. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Helen of Troy's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Helen of Troy. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Helen of Troy going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Helen of Troy that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com