Helen Of Troy Posts Solid EPS, Provides Outlook

In a report by Jefferies, Helen of Troy HELE exceeded its forecast given another quarter of strong operating margin expansion. OXO growth continues in the double digits, though Personal Care organic declines look to have deteriorated sequentially. Management provided a FY outlook for the first time in over two years, suggesting increasing visibility in the business. Helen of Troy posted F2Q EPS of $0.75, up +39% from $0.54 ongoing EPS a year ago, was above our $0.66 estimate and $0.64 consensus. Ongoing operating profit of $27.7 mil, up +34.0%, was ahead of the $25.8 mil forecast, as operating margin of 15.8% was above 14.6% in Jefferies' model as well. Interestingly, management provided an EPS outlook for F2011E of $2.70-$2.80, marking the first time since late in F2008 that the company has provided an outlook. Jefferies has a Hold rating & a $24.50 price target on HELE HELE is trading down 3.5% at $25.95