Cosmetics company e.l.f. Beauty (NYSE: ELF) will be reporting results this Wednesday after market hours. Here’s what investors should know.
e.l.f. Beauty beat analysts’ revenue expectations last quarter, reporting revenues of $479.4 million, up 35.5% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is e.l.f. Beauty a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting e.l.f. Beauty’s revenue to grow 38.2% year on year, improving from the 14.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. e.l.f. Beauty rarely misses Wall Street’s revenue estimates.
Looking at e.l.f. Beauty’s peers in the personal care segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Estée Lauder delivered year-on-year revenue growth of 6.8%, beating analysts’ expectations by 1.8%, and Medifast reported a revenue decline of 19.4%, topping estimates by 1%. Medifast traded up 5.2% following the results.
Read our full analysis of Estée Lauder’s results here and Medifast’s results here.
There has been positive sentiment among investors in the personal care segment, with share prices up 8.3% on average over the last month. e.l.f. Beauty is up 6.7% during the same time and is heading into earnings with an average analyst price target of $117.13 (compared to the current share price of $110.65).
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