E.L.F. Beauty Stock in Focus Ahead of Earnings: What to Expect
E.L.F. Beauty, Inc. (ELF) is set to release its fiscal second-quarter earnings after the market closes on Wednesday, and investors are eagerly awaiting the results. The company’s stock has been under pressure in recent weeks, with analysts lowering price targets ahead of the earnings report.
Analysts are expecting revenue of $285.76 million and earnings of 42 cents per share for the quarter, according to estimates from Benzinga Pro. This comes after E.L.F. Beauty missed analyst estimates for revenue and adjusted EPS in its most recent quarter. The company reported revenue of $324.47 million, missing analyst estimates of $376.99 million by 13.93%, and adjusted EPS of $1.10, missing analyst estimates of $1.13.
Despite the recent miss, E.L.F. Beauty raised its guidance for the full year, guiding for net sales between $1.28 billion and $1.3 billion, up from previous guidance of $1.23 billion to $1.25 billion. This suggests that the company remains optimistic about its long-term growth prospects.
“We are off to a strong start this fiscal year, delivering 50% net sales growth and 260 basis points of market share gains in Q1. This marked our 22nd consecutive quarter of both net sales growth and market share gains–putting e.l.f. Beauty in a rarified group of high growth consumer companies. We continue to make progress across color cosmetics, skin care and international and believe our unique areas of advantage will fuel our ability to win in fiscal 2025 and beyond,” said CEO Tarang Amin in the report.
However, the recent price target cuts by analysts suggest that they are concerned about the company’s ability to meet these expectations. In the weeks leading up to E.L.F. Beauty’s second-quarter report, multiple analysts have lowered their price targets.
Last week, Jefferies analyst Ashley Helgans maintained a Buy rating but lowered the price target from $220 to $175. In addition, DA Davidson analyst Linda Bolton Weiser maintained a Buy rating and price target of $223.
A week earlier, Stifel maintained a Hold rating and lowered the price target from $161 to $131, Baird cut its price target to $175 from $240, and Truist slashed its target from $210 to $130.
E.L.F. Beauty shares are down about 43% since the company last reported quarterly results.
ELF Price Action:
At the time of publication, E.L.F. Beauty shares were down 3.61% at $103.39, per data from Benzinga Pro.
Key Takeaways:
* E.L.F. Beauty is expected to report its fiscal second-quarter earnings after the market closes on Wednesday.
* Analysts are expecting revenue of $285.76 million and earnings of 42 cents per share.
* The company’s stock has been under pressure in recent weeks, with analysts lowering price targets ahead of the earnings report.
* E.L.F. Beauty raised its full-year guidance, suggesting optimism about long-term growth prospects.
Investors will be closely watching the company’s earnings report to see if it can meet these expectations and turn around its recent stock performance.
