Beauty Retail Company ULTA Gained 5% Share on Q1 Earnings

On Thursday, May 28, the beauty retail company ULTA released its first-quarter results, gaining 5% shares in after-hours trading.

Ulta Beauty is an American cosmetic line. They produce products such as skincare, haircare, nail, bath and body, beauty tools as well as men’s and women’s fragrances.

The company, which is under Zacks Retail – Miscellaneous industry, announced that its revenues for the quarter that ended April 2021 were $1.94 billion.

This recently released data topped Zacks Consensus Estimate by 15.85% in comparison to $1.17 billion generated revenues last year.

The firm peaked the consensus revenue estimates three times for the last four quarters.

Regarding the company’s quarterly earnings, it came out with $4.10 per share, striking the $1.92 per share of Zacks Consensus Estimate.

This is in comparison to last year’s loss of $1.12 per share. These numbers are adjusted for non-recurring products.

A quarter ago, it was forecasted that Ulta Beauty would post earnings of $2.27 per share. However, it actually generated earnings of $3.41, which delivered a surprise of 50.22%

The firm announced that its earnings per share (EPS) is $4.07 and the revenue is $1.94B, which is higher than the analysts’ forecast of $1.93 EPS and $1.64B revenue.

The comparable sales for the whole year of 2021 are forecasted between 23% to 25%, which is up from the previous guidance range of 15% to 17%.

The EPS was estimated to be in the range of $11.50 to $11.95, which is higher than the prior estimation of $8.85 to $9.30.

Meanwhile, the revenue was anticipated to be between $7.7B to $7.8B.

Next Move

Since Ulta Beauty outperformed the stock market so far this year, investors are looking for its next move.

However, there is no direct response to this. The best way to track it is by looking at the company’s earnings outlook.

According to research, there is a strong correlation between short-term stock movements and shifts in earnings estimate revisions.

Upfront of this earnings release, Ulta’s trend in estimated revisions is quite favorable.

The recent status of Ulta Beauty was interpreted into a Zacks Rank #2 (buy) for the stock.

While the magnitude and direction of the company’s estimate revisions can alter succeeding the firm’s recently released earnings report.

Consequently, investors should consider that the industry’s viewpoint can also have an impact on the accomplishment of the stock.