Cosmetics company e.l.f. Beauty (NYSE:ELF) will be reporting results next Wednesday afternoon. Here’s what investors should know.
e.l.f. beat analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $324.5 million, up 50% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA and earnings estimates.
Is e.l.f. a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting e.l.f.’s revenue to grow 34.3% year on year to $289.3 million, slowing from the 76.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. e.l.f. has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 14.1% on average.
Looking at e.l.f.’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. USANA’s revenues decreased 6.2% year on year, missing analysts’ expectations by 2.7%, and Coca-Cola reported flat revenue, topping estimates by 2.9%. USANA traded up 6% following the results while Coca-Cola was down 3.1%.
Read our full analysis of USANA’s results here and Coca-Cola’s results here.
Investors in the consumer staples segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. e.l.f.’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $172.29 (compared to the current share price of $110).
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