Helen (HELE), ConAgra (CAG) raise sales guidance after solid results

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Helen (HELE), ConAgra (CAG) raise sales guidance after solid results

 Helen (HELE), ConAgra (CAG) raise sales guidance after solid results
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Highlights

  • Helen of Troy Limited (NASDAQ: HELE) reported a gross profit of US$210.58 million in Q2, FY22.

  • HELE expects its core net sales to be between US$1.99 billion and US$2.03 billion in fiscal 2022.

  • ConAgra Brands, Inc’s (NYSE: CAG) net sales topped analysts' expectations.

Stocks of Helen of Troy Limited (NASDAQ: HELE) and ConAgra Brands, Inc. (NYSE: CAG) were trending on Wall Street Thursday after reporting strong quarterly results. HELE was up around 5 percent, while the latter rose about 1 percent in the premarket trading.

HELE stocks were priced at US$229.04, up 5.03 percent, while CAG shares traded at US$35.08, up 1.74 percent at around 8:30 am ET on October 7 from their previous closing price.

Here we explore the quarterly earnings of the two companies.

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Helen of Troy Limited (NASDAQ: HELE)

Helen of Troy is a consumer products company based in Bermuda. It offers various goods like housewares, health and home items, and beauty products to consumers.

The company's net sales were US$475.22 million in Q2, FY22, compared to US$530.85 million in the same quarter of the previous year. Its gross profit was US$210.58 million, versus US$230.33 million in the prior year's second quarter.

Its operating income came in at US$67.29 million in the quarter ended on August 31, compared to US$99.27 million in the comparable period of the prior year. It reported a net income of US$51.31 million, or US$2.11 per diluted share, compared to US$87.33 million, or US$3.43 per diluted share in Q2, FY21.

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The company projected its core adjusted EPS to be between US$11.05 and US$11.35 in fiscal 2022. It also expects its core net sales to be in the range of US$1.99 billion to US$2.03 billion in fiscal 2022.

It has a market cap of US$63.05 billion, a P/E ratio of 21.85, and a forward P/E one year of 23.17. Its EPS is US$9.98. The HELE stock declined 0.99 percent YTD.

The highest and lowest stock prices of the company for the last 52 weeks were US$265.97 and US$181.84, respectively. Its trading volume was 234,805 on October 6.

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Helen of Troy (HELE) and ConAgra Brands (CAG) post strong quarterly earnings

 

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ConAgra Brands, Inc. (NYSE: CAG)

ConAgra Brands is a food company that offers packaged foods under various brand names in supermarkets, food service facilities, etc. It is based in Chicago, Illinois.

The company's Q1 earnings topped analysts' forecast as it managed to offset the rising raw material costs by increasing the prices of its frozen meals and snacks.

The net sales of the company decreased by 1 percent YoY to US$2.65 billion in Q1, FY22, topping analysts’ expectations of US$2.54 billion, according to Refinitiv data. Its net income came in at US$235.7 million, or US$0.49 per share, compared to US$329.8 million, or US$0.67 per share in Q1, FY21.

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The net cash flow from operating activities was US$139.8 million compared to US$284.5 million in the year-ago quarter. Its cash and cash equivalents and restricted cash at the end of the quarter were US$68.0 million compared to US$439.2 million in the year-ago period.

The company raised its organic net sales growth by 1 percent from its previous forecast of flat growth. It also expects its full-year gross inflation to be about 11 percent, up from its earlier estimate of 9 percent.

The market cap of the company is US$16.56 billion, the P/E ratio is 12.96, and the forward P/E one year is 13.96. Its EPS is US$2.66.

The highest and lowest stock prices in the last 52 weeks were US$39.09 and US$32.25, respectively. Its share volume on October 6 was 2,920,569.

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Bottomline

Both the companies have topped analysts' forecasts in their latest quarters and raised their fiscal 2022 sales guidance. Expectedly, the consumer sector is witnessing a strong rebound as the economy nurses back to health. The S&P consumer discretionary sector grew 10.28 percent YTD, while the consumer staples sector rose 4.05 percent YTD, indicating sustained overall growth over the past few quarters. However, investors should evaluate the companies carefully before investing in the stock market.

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