Helen of Troy Beats Q2 Estimates, Shares Surge

Shares of

jumped over 6 percent in after-hours trading after the company reported better-than-expected results for its fiscal second quarter and issued a strong forecast. The El Paso, Texas-based company posted quarterly net income of $24.5 million, or $0.84 per share, compared to $18.8 million, or $0.65 per share, in the year-earlier quarter. Excluding items, adjusted earnings climbed to $1.12 per share from $0.99 per share. Its net sales revenue surged 15.4 percent year-over-year to $369.1 million from $319.9 million. However, analysts were expecting a profit of $0.93 per share on revenue of $337.67 million. The average estimate among 11 Estimize users was for earnings of $0.94 per share and revenue of $344.17 million. Its gross profit margin shrank 1.7 percentage points to 40.1 percent from 41.8 percent. Operating income surged to $32.4 million in the latest quarter, versus $24.6 million in the year-ago quarter. Adjusted EBITDA rose to $45.1 million from $40.2 million. At August 31, 2015, the company had cash and cash equivalents of $19.4 million, versus $24.7 million at August 31, 2014. Inventory at August 31, 2015 was $348.5 million, versus $351.8 million at August 31, 2014. Julien R. Mininberg, Chief Executive Officer, said, "All business segments grew in the second quarter, including Beauty. We continue to make progress on our key initiatives in product innovation, brand marketing, talent development, shared services and collaboration across our business segments, positioning us well to accomplish the goals we have set for this full fiscal year. With capital allocation representing a key component of our strategic plan, we returned capital to shareholders by repurchasing $50.0 million of our common stock on the open market." For fiscal year 2016, Helen of Troy now projects adjusted earnings of $5.50 to $5.85 per share on net sales revenue of $1.500 billion to $1.536 billion. Analysts expected earnings of $5.45 per share on revenue of $1.51 billion. Helen of Troy shares gained 6.59 percent to $101.00 in the after-hours trading session.