Beauty, cosmetics, and personal care retailer Ulta Beauty (NASDAQ:ULTA) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Ulta missed analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $2.55 billion, flat year on year. It was a softer quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is Ulta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ulta’s revenue to be flat year on year at $2.50 billion, slowing from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.53 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. Ulta has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Ulta’s peers in the specialty retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bath and Body Works delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 1.9%, and Sally Beauty reported revenues up 1.5%, in line with consensus estimates. Bath and Body Works traded up 14.7% following the results while Sally Beauty was also up 7.1%.
Read our full analysis of Bath and Body Works’s results here and Sally Beauty’s results here.
There has been positive sentiment among investors in the specialty retail segment, with share prices up 7.5% on average over the last month. Ulta is up 3.3% during the same time and is heading into earnings with an average analyst price target of $400.16 (compared to the current share price of $395.40).
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