Preview: Helen Of Troy's Earnings

Helen Of Troy HELE releases its next round of earnings this Thursday, July 08. Here is Benzinga's essential guide to Helen Of Troy's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $2.61 and sales around $439.34 million. Helen Of Troy reported a per-share profit of $2.53 when it published results during the same quarter last year. Sales in that period totaled $420.83 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street consensus estimate for earnings would represent a 3.16% increase for the company. Sales would be up 4.4% from the same quarter last year. Helen Of Troy's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Helen Of Troy were trading at $234.78 as of July 06. Over the last 52-week period, shares are up 15.04%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Helen Of Troy is scheduled to hold the call at 09:00:00 ET and can be accessed here.