Cosmetics company e.l.f. Beauty (NYSE: ELF) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
e.l.f. Beauty missed analysts’ revenue expectations by 6.4% last quarter, reporting revenues of $343.9 million, up 14.2% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
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, analysts are expecting e.l.f. Beauty’s revenue to grow 29.5% year on year to $460.1 million, slowing from the 31.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 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. Beauty has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.5% on average.
Looking at e.l.f. Beauty’s peers in the consumer staples segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Tyson Foods delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 2.7%, and Constellation Brands reported a revenue decline of 9.8%, topping estimates by 2.9%. Constellation Brands traded up 5.3% following the results.
Read our full analysis of Tyson Foods’s results here and Constellation Brands’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 9.3% on average over the last month. e.l.f. Beauty is up 12.7% during the same time and is heading into earnings with an average analyst price target of $112.86 (compared to the current share price of $86.63).
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