Helen Of Troy Q3 Results Top Estimates, Backs 2014 Outlook

(RTTNews) - Personal care products maker Helen of Troy Ltd. (HELE) reported Thursday a profit for the third quarter that edged down from last year, despite lower expenses and ales growth, reflecting higher income tax expense. However, both earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings guidance for the fourth quarter, just below Street view, and reaffirmed its outlook for the full-year 2014.

"We continued our positive momentum during the quarter, increasing consolidated sales revenue, operating income and adjusted EBITDA. Sales growth was led by our Housewares segment, through the extension of OXO categories as well as expanded shelf space and assortments at several key retailers," Chairman, President and CEO Gerald Rubin said in a statement.

The El Paso, Texas-based company reported net income of $37.52 million or $1.16 per share for the third quarter, lower than $37.72 million or $1.18 per share in the prior-year quarter.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $1.09 per share for the quarter. Analysts' estimate typically excludes one-time items.

Net sales revenue for the quarter grew 1.6 percent to $380.73 million from $374.60 million in the same quarter last year, and topped four Wall Street analysts' consensus estimate of $378.25 million by a whisker.

Revenues from housewares segment, which sells OXO branded goods, advanced 10.3 percent to $74.78 million from last year, and healthcare / home environment segment generated revenues of $165.75 million, up 4.8 percent from a year ago.

Meanwhile, personal care segment revenues declined 5.7 percent to $140.20 million from the prior year.

"Better product mix and new product introductions supported by effective marketing strategies drove sales growth in our Healthcare/Home Environment segment. While our Personal Care segment continues to face a challenging retail environment, which pressured sales, we increased profitability in this segment," Rubin added.

Operating margin for the quarter improved 40 basis points to 13.0 percent as selling, general and administrative expense as a percentage of sales declined 130 basis points, partially offset by an 80 basis points contraction in gross profit margin amid higher costs of goods.

Income tax expense for the quarter was $9.37 million, up from $6.09 million last year.

Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.80 to $0.90 per share, while analysts' project $0.92 per share.

For fiscal 2014, the company continues to expect adjusted earnings in a range of $3.50 to $3.60 per share, on projected net revenues between $1.29 billion and $1.32 billion.

Street is currently looking for full-year 2014 earnings of $3.55 per share on annual revenues of $1.33 billion.

HELE closed Thursday's regular trading session at $48.50, up $0.24 or 0.50% on a volume of 0.21 million shares.