Helen of Troy (HELE, Financial) shares saw a substantial uptick of 18.25% today, reflecting strong investor confidence following the release of its latest quarterly earnings report.
In the fiscal year 2025 second-quarter results ending August 31, Helen of Troy reported adjusted earnings per share (EPS) of $1.21 with revenue totaling $474.2 million. Although there was a 3.5% decline in sales year-over-year, revenue exceeded Wall Street's expectations by $15.3 million, and EPS surpassed analyst estimates by $0.16.
Looking ahead, Helen of Troy has reaffirmed its full-year sales guidance between $1.88 billion and $1.94 billion, as well as its GAAP EPS guidance ranging from $4.69 to $5.45. The company anticipates adjusted EPS to be between $7 and $7.50, which is above the Wall Street target of $7.11. However, the company has revised its free cash flow guidance to a range of $180 million to $200 million, down from a previous estimate of $200 million to $240 million.
Currently trading at $73.75, Helen of Troy (HELE, Financial) holds a market cap of $1.682 billion, positioning it in the small-cap segment within the consumer defensive sector. With a price-to-earnings (P/E) ratio of 11.58 and a price-to-book ratio (P/B) of 1.09, the stock appears relatively undervalued based on its historical P/E and market metrics.
Furthermore, the company's GF Value at $113.26 suggests that it is significantly undervalued. For a complete valuation analysis, check the GF Value page.
Despite certain financial warning signs such as the issuance of new debt and declining revenue per share, Helen of Troy maintains a high Piotroski F-Score of 9, indicating strong financial health. Moreover, the Beneish M-Score of -2.66 indicates the company is unlikely to be a financial manipulator.
Investors should consider these factors alongside the company's projected growth and financial adjustments, which are likely contributors to the recent surge in share price.
