Financial News
e.l.f. (ELF) Q3 Earnings Report Preview: What To Look For
Cosmetics company e.l.f. Beauty (NYSE:ELF) will be reporting results tomorrow afternoon. Here’s what you need to 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 34.4% year on year to $289.6 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 personal care segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Herbalife’s revenues decreased 3.2% year on year, missing analysts’ expectations by 1%, and Estée Lauder reported a revenue decline of 4.5%, in line with consensus estimates. Herbalife’s stock price was unchanged after the results, and Estée Lauder’s price followed a similar reaction.
Read our full analysis of Herbalife’s results here and Estée Lauder’s results here.
Investors in the personal care segment have had steady hands going into earnings, with share prices flat over the last month. e.l.f. is up 2.6% during the same time and is heading into earnings with an average analyst price target of $169.07 (compared to the current share price of $104.20).
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