NEW YORK (TheStreet) -- Helen of Troy (HELE - Get Report) shares are down -11.4% to $52.42 on Wednesday after the consumer products manufacturer cut its 2015 fiscal year earnings guidance to between $3.70 and $3.80 per share from its previous guidance of between $4.30 and $4.40.
Helen of Troy also forecast revenue between $1.28 billion and $1.3 billion, analysts are expecting revenue of $1.39 billion.
The company cited weakness in the retail sector as reason for the lowered earnings expectations.
TheStreet Ratings team rates HELEN OF TROY LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HELEN OF TROY LTD (HELE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HELE's revenue growth has slightly outpaced the industry average of 5.5%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.28% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HELE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- HELEN OF TROY LTD has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HELEN OF TROY LTD reported lower earnings of $2.67 versus $3.62 in the prior year. This year, the market expects an improvement in earnings ($4.33 versus $2.67).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Household Durables industry average. The net income increased by 13.9% when compared to the same quarter one year prior, going from $14.39 million to $16.40 million.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.47 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full analysis from the report here: HELE Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.